THE RISE OF THE RENTAL
With the increasing demand for housing and rising popularity of constructing homes for rent, Austin has earned a top 10 position in a new analysis of American metro areas with the highest number of single-family rentals built for all of 2022.
A total of 324 build-to-rent homes were completed in Austin in 2022, which is a 10-year high, according to the study by RentCafe. The newest findings put the Texas Capital three places higher than in 2021, when the city ranked No. 13 in the nation.
"Austin was named the second fastest growing city in the U.S. by the Kenan Institute of Private Enterprise," the study's author wrote. "That came after the city recorded a 4.3 percent rise in its GDP in 2022 to $216 billion, following the Bay Area."
The study analyzed build-to-rent data from RentCafe's sister site, Yardi Matrix, for communities that had at least 50 single-family rental units.
Dallas nailed the rankings this year by earning the top spot with nearly 2,800 single-family rental units completed last year. Phoenix (which outpaced Dallas last year) ranked No. 2 with only 1,527 units completed. After Phoenix, single-family rentals in other American metro areas only went into the triple digits, with Atlanta, Georgia (No. 3) at 808, Greenville, South Carolina (No. 4) at 584, and Charlotte, North Carolina rounding out the top five with 475 units completed.
The metro areas that complete the top 10 for the most build-to-rent homes in 2022 include:
- No. 6 – Detroit, Michigan
- No. 7 – Myrtle Beach, South Carolina
- No. 8 – Panama City, Florida
- No. 9 – Charleston, South Carolina
- No. 10 – Austin, Texas
Austin had the seventh highest number of single-family rentals completed in the country within the last five years, totaling 1,096 units. The Texas cities that ranked higher were Dallas (No. 2) and Houston (No. 4). San Antonio ranked below Austin at No. 8. Phoenix took the No. 1 spot with over 6,000 build-to-rent homes completed in the same time period.
The study's findings support a growing demand for flexibility among renters who may not want the high cost and maintenance associated with home ownership, RentCafe says.
“More and more people are deciding they want the best of both worlds: the flexible lifestyle of the renter, with no maintenance commitments and costs, and the comfort and privacy offered by living in a house,” the study’s author wrote. “In this case, build-to-rent homes check all of the boxes, while high home prices and rising interest rates make them even more appealing.”
The number of single-family rentals is expected to continue rising dramatically in 2023. Currently, 945 units are under construction in Austin. Overall, there are 44,700 build-to-rent homes being built this year throughout the nation; three times more than the number of completed homes in all of 2022, the study says.