In 2023, the completion of nearly 27,500 build-to-rent houses marked a record high across the nation. In Dallas, approximately 2,700 of those rental homes were built.
According to a study from RentCafe, Dallas’ build-to-rent homes decreased slightly in 2023, showing a slight dip from the previous year, yet still ranking as its second-best year for build-to-rent projects in the last decade.
The annual construction of single-family rental homes surged from an average of 6,600 in the U.S. in the years preceding the pandemic, to tens of thousands of new units each year thereafter. Following years of surging completions, the trend of build-to-rent projects reaches its pinnacle this year, with almost 45,500 new houses currently under construction.
The top five metros with the highest numbers of units in progress — Phoenix, Dallas, Houston, Huntsville and Charlotte — comprise half of the total volume.
In the last five years, Dallas constructed over 6,500 single-family rental homes — 62% of all rental homes in the metro area. Texas led the nation in build-to-rent development in 2023, with close to 4,800 rental houses completed. Within Texas, the Dallas metro area contributed to over half of these units.
But what makes these homes so popular? According to RentCafe, apart from seeking privacy and additional space, renters are attracted to single-family rental homes due to their modernity and contemporary amenities. In fact, approximately 41% of all build-to-rent homes were constructed within the last five years, amounting to approximately 68,000 rental properties.
The current surge of purpose-built rental homes is propelled by a confluence of factors: the prevalence of hybrid work arrangements and Millennials entering their family-building years, facing challenges in homebuying. With strong demand from renters, coupled with interest from institutional investors and established builders, this niche market is reaching an unprecedented historical peak.
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