Build-to-Rent Construction Hits Record High

The build-to-rent sector reached 39,000 new single-family rental completions last year, and 110,000 more are currently underway, according to Point2Homes. 

The number of new single-family rentals in 2024 increased by 15.5% from 2023 (33,800). Compared to pre-pandemic numbers, which typically averaged 6,000 to 7,000 units per year, 2024 marked a record high. 

Point2 notes that the build-to-rent sector is being fueled by several factors, including: 

• Millennials who are creating families and leaving traditional apartments, but not yet affording homeownership 
• Potential homebuyers of all ages who are sidelined by unaffordable home prices 
• High-income renters by choice 
• Remote and hybrid workers in need of extra space 
• Retirees 
• Older homeowners who can’t age in place but want the space, financial flexibility and low maintenance lifestyle that renting offers 

“While rising land, labor and material costs may slow development in 2025 and 2026, the outlook for BTR remains positive, with more than 110,000 units already in the pipeline nationwide,” Point2 told PAR. 

“In Pennsylvania, markets like York-Hanover have seen significant growth, with a 44% increase in BTR completions over the last five years. Philadelphia has also experienced a notable rise, with a 34.4% increase in completions during the same period.” 

“While areas like Harrisburg-Carlisle and Pittsburgh have not seen new completions in the past five years, they still have the highest number of BTR units in the state, reflecting their established presence in the market and the fact that demand for BTR communities remains strong throughout the state,” they added. 

“With affordability continuing to drive younger generations toward renting, many are opting for BTR communities that offer flexible living arrangements and modern amenities,” Point2 said. “Suburban BTR properties are particularly appealing, providing more space and affordability compared to urban centers. As economic factors like high mortgage rates and home prices remain elevated, BTR is likely to remain a popular choice for renters in Pennsylvania and beyond.”