North Texas leads the state’s build-to-rent boom with nearly 8,500 units in development.
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North Texas is leading the state’s build-to-rent boom.
According to a Jan. 27 report from Point2Homes, 21,812 build-to-rent units are in the pipeline for the state, with 8,470 of those in the Metroplex.
Fort Worth leads the way in the region with 1,816 units in the pipeline, according to the report. McKinney sits in the No. 2 spot with 1,293 units and Denton rounds out the top 3 with 876 units.
Other top North Texas cities include Melissa (696 units), Anna (635 units), Garland (543 units) and Celina (537 units).
The Houston metro trails behind Dallas with 4,613 build-to-rent homes in the pipeline. Austin follows with 4,313 units and San Antonio is No. 4 with 2,994 units.
Once completed, the new house rentals will expand the state’s build-to-rent inventory by 70%, according to the report.
The build-to-rent boom in North Texas has been strong, with homebuilders purchasing large tracts of land for new communities. While the build-to-rent market cooled in early 2024, with a 57% drop from 2022, homebuilders are still riding a wave of interest in this alternative product type.
In December, Ray Johnston of No Bad Days LLC told Dallas Business Journal he was in the process of selling 75 acres in Princeton to homebuilder Lennar Corp. The land is expected to be split into 32 acres for build-to-rent homes and 43 acres for single-family homes.
In August 2024, national builder Taylor Morrison began construction on a 226-unit townhome community in Arlington under its build-to-rent brand, Yardly.
A new build-to-rent community is expected to start construction this year in Celina, the fastest-growing city in the country. Corson Cramer Development bought and sold 40 acres to Yardly, who will construct 396 rental homes.
Build-to-rent homes in DFW are increasing in popularity, providing residents an option to upgrade from apartments without the higher upfront cost of buying a home. The overall 2024 housing market remains challenging, with low inventory and high prices leading to fewer deals.
While Texas leads the way for the BTR boom nationally, Arizona and Florida linger behind with just under 14,000 units on the way.
Point2Homes is a real estate listing portal for rental homes across the United States. The methodology behind the data is based on data related to build-to-rent communities containing at least 50 single-family rental units. The analysis was performed by Point2Home using data provided by Yardi Matrix, a commercial real estate data and research source.
