Here's Where Build-to-Rent Homes Are Going Up Like Gangbusters

Rental rates peaked in August 2022, when the average rent nationwide was $2,053. By June, that amount cooled a bit to $1,995. But there's more good news on the horizon for the 34% of American households who rent. The construction of single-family homes built specifically for renting is breaking records.

What's considered a "single-family" home?

Build-to-rent (BTR) communities are defined by Yardi Matrix, a real estate data and research company, as a community where at least 50% of the units fit one of the following criteria:

• Does not share any walls with another unit -- for example, a single-family home.
• Does share one or more walls but has no neighbors above or below or has a direct-access garage. Duplexes and triplexes are good examples of this.

Huge surge in new construction

According to RentCafe's annual Build-to-Rent report, 11 metro areas have experienced a huge surge in the number of new homes built over the past five years. There are 45,000 rental homes currently under construction, tripling the number completed in 2022.

Flooding the market with new homes not only gives renters more options but should also help drive down rental rates as landlords begin to compete for renters.

Whether you're considering a move for a job or want a change of scenery, these cities are making it easier to find a place to call home.

The best places to find BTR homes

The RentCafe study found that these are the best places in the U.S. to find a single-family home for rent:

• Dallas, Texas: Dallas is where the most single-family rentals were completed in 2022, with nearly 2,800 new builds, a 10-year high for the metro.
• Phoenix, Arizona: Next is Phoenix, with over 1,500 BTR homes constructed in 2022. While that may be 9% fewer than were completed in 2021, Phoenix can brag about tripling the number of single-family homes built between 2018 and 2022.
• Atlanta, Georgia: With more than 800 single-family homes delivered last year, Atlanta also hit a 10-year high.
• Greenville, South Carolina: Renters in Greenville now have 584 more rental homes from which to choose.
• Charlotte, North Carolina: The fast-growing Charlotte gave the city 475 more single-family rentals, another 10-year high.
• Detroit, Michigan: Given the number of billion-dollar investments scheduled for the Motor City over the next few years, it's no surprise that Detroit added 458 new single-family homes.
• Myrtle Beach, South Carolina: People moving to Myrtle Beach for sand and surf will be met by 383 new single-family homes.
• Panama City, Florida: It's a 10-year high for Panama City as it produced 357 new builds in 2022.
• Charleston, South Carolina: Ever-popular Charleston now has 354 new homes for its expanding population. It's a proud accomplishment and a 10-year high.
• Austin, Texas: Austin, named by the Kenan Institute of Private Enterprise as the second fastest growing city in the U.S., is another city that can celebrate hitting a 10-year high with 324 new builds.

For the one-third of the American population who rent, the upcoming release of even more BTR homes is sure to be welcome news. The more options available, the better.