Built to Rent (BTR) a growing trend in residential construction, building single family home explicitly for long-term rental, has reached record levels in the Atlanta Metro Area last year. Last year was massive for the BTR industry, with 14 of the 20 highest-producing metros seeing 10-year highs in build-to-rent production, per the report. Atlanta ranked third in the nation for BTR completions last year, falling behind only Phoenix and Dallas, respectively. Of the more than 27,000 BTR units nationwide that were completed in 2023, nearly 2,000 were delivered in metro Atlanta. Over the past five years, BTR construction in metro Atlanta has exploded by 646 percent, accounting for more than 3,500 homes.
A few of the factors contributing to explosion in this sector are:
The rising cost of homeownership, coupled with higher interest rates. Higher mortgage rates are one of the primary factors increasing homeowner monthly payments, and dampening demand for for-sale housing as prospective buyers opt for rentals.
The primary demographic groups driving the demand for BTR housing is Millennials, now the largest segment of the U.S. population. Millennials are now reaching peak family formation years, the appeal of more space and targeting particular school districts are driving demand for BTR
A growing number of institutions expand their investment strategies to include BTR, capital flows into BTR product are increasing significantly. These institutional investors have committed over $50 billion in recent years
The rise of remote work, accelerated by the COVID-19 pandemic, is another demographic shift that is influencing the BTR sector. With more people working from home, there's growing demand for rental properties with the extra space and layout to accommodate home offices.
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