Florida Among Build-to-Rent Leaders

NEW YORK – For those who aren’t ready to buy, renting the American dream for the time being might just be the next best thing. As rapidly rising home prices, discouraging down payment amounts and daunting mortgage rates keep many on the sidelines, the build-to-rent (BTR) sector is swooping in to save the day, offering renters not just options, but peace of mind.

Combining the flexibility of renting without maintenance costs and the comfort and privacy of a standalone home, single-family homes in build-to-rent communities are becoming a more comfortable stepping stone on the road to homeownership. As a consequence, developers across the country are rapidly expanding single-family rental housing to keep up with growing demand.

Case in point, house renters in Florida will soon benefit from 13,591 new single-family homes for rent, which are currently under construction across the state. According to the most recent Point2Homes build-to-rent report, Florida shares the podium with Texas and Arizona. What’s more, the Southeastern state is one of only four that have more than 10,000 single-family homes for rent in various stages of development.

• A total of 110,727 single-family homes for rent are under construction across the U.S., with states like Texas, Arizona and Florida leading the build-to-rent (BTR) boom.
• Florida is set to increase its BTR supply by 13,591 new units, which will translate to a hefty 83% increase in inventory upon completion. Only Texas (21,812 units) and Arizona (13,972) have more units in the pipeline.
• Orlando is among the best metros for single-family rentals under construction, snatching the seventh spot due to the 3,085 houses for rent that are in the works and that will become available to renters in the area in the coming months or years.
• Tampa and Jacksonville missed the top 10, but each metro is working on adding nearly 2,000 new units to their existing inventory. North Port is the only other metro in the state with more than 1,000 units under construction.
• Zooming in on Florida’s best cities for single-family rental construction, 6 cities stand out: Jacksonville; Wesley Chapel; Kissimmee; Port St. Lucie; St. Augustine; and St. Cloud each boast between 514 and 912 units under construction.

Texas & Arizona Rule the Southwest; Florida Is the Leader in the Southeast, with 13,591 Units in the Pipeline

Although two Southwestern states are at the forefront of the build-to-rent revolution, Southeastern states are close behind. Developers in Texas are working on nearly 22,000, which puts The Lone Star State in a league of its own when it comes to single-family rentals under construction. However, Arizona and Florida are neck in neck, both states boasting more than 13,000 units in the pipeline.

Coming in at number 3, Florida is building 63 new build-to-rent communities, which will add 13,591 single-family rentals in metro areas like Orlando, Tampa, Jacksonville and North Port, to name only the areas working on the most units. When these new house rentals are completed, they will increase existing inventory by 83%, making it that bit easier for renters to find homes that are both more spacious and more private.

One of the fastest-growing states in the nation, Florida is also an economic powerhouse, largely due to its tourism, finance, military and construction industries, which create a strong job market, turning the state into a magnet for both working-age residents and retirees looking for the perfect home in the perfect beach town. And, as housing demand remains high, developers have their work cut out for them.

North Carolina and Georgia round out the top five states with the most single-family rental homes in the pipeline. Developers in these states are working on thousands of homes aimed at upgrading renters’ quality of life. These new developments offer house renters access to spacious units with attached garages and dense amenity base, which are expected to appeal to an array of potential residents. What’s more, these modern homes are built in well-planned neighborhoods, signaling a shift toward creating more tenant-focused rental options.

It’s not just about total raw numbers — even states where the BTR sector is not as well established, or states with emerging rental markets like Nebraska, Rhode Island, and New Hampshire are experiencing significant inventory growth. For example, Nebraska will record a 255% increase in build-to-rent inventory when the units currently under construction come online. While these states’ gains are smaller in absolute terms, they highlight a larger trend: More states are embracing the build-to-rent movement, broadening rental housing options even in less traditional markets.

This expansion of the build-to-rent sector is driven by key advantages allowing developers to create more spacious homes for renters who need extra room but aren’t ready to buy. By shifting their attention away from dense urban centers, builders avoid high land costs, cumbersome construction practices, and strict zoning laws, making development more efficient. As a result, streamlined permitting and construction processes are delivering larger, more affordable rental homes at a faster pace, giving renters better options in less time.

Metro Orlando has 7th largest number of single-family rentals under construction in the nation; Tampa trails behind with nearly 2,000 units in the pipeline

With 3,085 houses for rent in various stages of development, Orlando is one of the top 10 best metros for BTR construction. And it’s no wonder developers are hard at work, as this coastal metro’s strong job market attracts thousands of people, sending housing demand through the roof. A major industrial and high-tech hub, Orlando has a $13.4 billion technology industry employing more than 50,000 people, while also boasting the 7th-largest research park in the country, which is home to over 120 companies and employs more than 8,500 people.

Tampa and Jacksonville missed the top 10, but developers in each of the two large metros are working on adding nearly 2,000 new units to their existing inventory. North Port is the only other metro in the state with more than 1,000 units under construction.

And although the suburbs are the best places for the development of build-to-rent communities, due to the more affordable land costs and less strict building and zoning codes, many cities proper in these metros will become home to more house renters in the near future, judging by the numbers of units in the pipeline: In cities like Jacksonville; Wesley Chapel; Kissimmee; Port St. Lucie; St. Augustine; and St. Cloud there are between 500 and 912 single-family rentals currently under construction.

But the net numbers aren't the full story. The better proof that the build-to-rent sector is gaining traction is represented by the increases in inventory that these new single-family rentals will bring. For example, Orlando's 3,000+ units will make the local supply of house rentals jump 226% when completed. Tampa (+71%), Jacksonville (+58%) and North Port (94%) will also see increases, although "only" double-digit ones.

Of course, there are a few metros that will see absolutely spectacular increases in inventory, but some of the jumps should be taken with a grain of salt. For example, in some metros both numbers are impressive: Orlando metro will add more than 3,000 single-family rentals, which will increase the inventory by 226%. In other metros, the jump is so impressive precisely because existing inventory is meager. The 742 new house rentals under construction in Punta Gorda will translate to a 1,124% increase in supply when completed because this metro has only recently joined the build-to-rent bandwagon and is still at the beginning.

Obviously, the surge in build-to-rent construction is driven primarily by local economic growth creating jobs and attracting newcomers. However, the pandemic played no small part in the BTR trend taking off. Remote work and stay-at-home trends redirected renters from small apartments in expensive coastal areas to larger homes in affordable secondary markets. Also, additional factors like the soaring home prices and discouraging down payment amounts made renting more appealing, adding fuel to the BTR fire. Collectively, these factors support the rising demand for spacious rentals, drawing both renters and developers to the thriving single-family rental market.

Source: Point2Homes

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