A new rental report has revealed Texas is leading the nation with the highest single-family home rental construction growth, and Austin is among the top 10 U.S. metros building the most new homes for rent.
The analysis from rental listings website Point2Homes examined construction rates and building permit data for single-family homes that are "located in build-to-rent, professionally managed communities" across America. For the purpose of the study, build-to-rent communities are defined as those where a majority of homes eitherdon't share any walls with each other, or so have some shared walls but do not have neighbors above or below, or have a direct-access garage.
According to the report's findings, Austin's rental home construction rate is the 6th highest in the nation, and the metro area is expected to build 4,313 new single-family homes for rent in 2025.
The greatest share of rental homes – 1,253 units – are being built in Hutto, while Austin proper is only expecting to build 214 rental homes.
This is how many build-to-rent homes are being built across other Austin-area cities:
- 860 units – Leander
- 651 units – Round Rock
- 392 units – Georgetown
- 260 units – Liberty Hill
- 239 units – Dripping Springs
- 234 units – Pflugerville
- 210 units – San Marcos
"Austin is one of the fastest-growing large cities in the nation, its graduates and new residents naturally attracted to the area's booming high-tech sector, as well as its emerging pharmaceutical and biotechnology companies, which all contribute to the metro's strong job market," the report's author wrote. "It's no wonder then that developers are hard at work in the metro, building hundreds of new single-family homes for rent, the largest ones being The Mansions Eight65; YardHomes Cottonwood Creek; and Avilla Rio Oaks in Hutto and Liberty Hill."
Build-to-rent growth rates in Texas
Austin's rental home construction helps make up the total 21,812 units that are planned or currently being built in Texas this year.
The report claims Texas' healthy job market, remote work flexibility, and its business-friendliness are the top reasons why the build-to-rent growth has soared so high.
Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix (Point2Homes' sister company), says affordability is another major factor.
"The biggest hurdle to buying a home for [build-to-rent] BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market," Ressler says. "On average, renting a BTR unit is cheaper than buying a starter home. Recent reports indicate that renting can save one around $1,000 per month compared to buying. This is largely due to high mortgage rates and elevated home prices."
Ressler adds that the target markets – Millennials and Gen Z – are increasingly interested in new single-family home rentals to avoid the hurdle of paying high property taxes while still managing other debts like student loans. This also allows them to remain close to the city in a nearby suburb, rather than in rural areas.
"As urban areas become more congested and expensive, there’s a growing trend towards suburban living," Ressler said. "BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers."
Other Texas metros with skyrocketing single-family rental growth
Texas cities dominated the top 10 U.S. metros with the greatest build-to-rent growth rates. Dallas ranked No. 2 nationally with 8,470 new homes being built for rent in the metro.
Meanwhile, Houston and San Antonio ranked No. 5 and No. 8 respectively. Houston currently has 4,613 new single-family rental homes in the pipeline in 2025, while San Antonio is expected to build 2,994 units.
Phoenix, Arizona, topped the nation with the No. 1 highest new rental home construction rate. The Valley of the Sun is expected to complete 13,113 build-to-rent homes in 2025.
The top 10 U.S. metros building the most new rental homes in 2025 are:
- No. 1 – Phoenix, Arizona
- No. 2 – Dallas, Texas
- No. 3 – Atlanta, Georgia
- No. 4 – Charlotte, North Carolina
- No. 5 – Houston, Texas
- No. 6 – Austin, Texas
- No. 7 – Orlando, Florida
- No. 8 – San Antonio, Texas
- No. 9 – Raleigh, North Carolina
- No. 10 – Huntsville, Alabama