Multifamily Economic and Market Commentary on Build-to-Rent

This document is a market commentary focused on the build-to-rent (BTR) housing sector, discussing its recent growth and characteristics. It defines BTR as large housing sub-developments of 25 or more units that are centrally managed and often include shared amenities. The commentary outlines various types of BTR housing, including townhouses, horizontal apartments, and single-family detached homes. It presents data on BTR construction levels, noting a significant increase in completions during 2022 and 2023, driven by pandemic-related demand. The report highlights that many BTR units are developed by small-scale developers, while larger developments are a smaller segment of the market. It also details the demographic profile of BTR tenants, who tend to have higher incomes and often plan to purchase homes in the future. The document concludes by discussing geographic trends in BTR development, noting concentrations in Sunbelt metros like Phoenix and Dallas-Fort Worth, and the implications of these trends for future market dynamics.