A New Wave of Rental Construction in Texas: Houston Ranks 5th Nationally
A recent report from Point2Homes has revealed that Texas is leading the nation in single-family home rental construction growth, with Houston being one of the top five U.S. metros building the most new homes for rent.
Houston’s Rental Home Construction
According to the report, Houston’s rental home construction rate is the 5th highest in the nation, with the metro area expected to build 4,613 new single-family homes for rent in 2025. The majority of these new homes will be built in Cypress, with 1,007 units, while Houston proper is only expecting to build 326 rental homes.
Here’s a breakdown of the number of build-to-rent homes being built across other Houston-area cities:
- Rosharon: 922 units
- Hockley: 466 units
- Montgomery: 342 units
- Fresno: 320 units
- Katy: 266 units
- Pearland: 192 units
- Baytown: 164 units
- Atascocita: 162 units
- Texas City: 151 units
- Tomball: 148 units
- Fulshear: 147 units
Build-to-Rent Growth Rates in Texas
Houston’s rental home construction contributes to the total 21,812 units that are planned or currently being built in Texas this year. The report attributes Texas’ healthy job market, remote work flexibility, and business-friendliness as the top reasons for the rapid growth in build-to-rent construction.
Affordability is Key
Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix (Point2Homes’ sister company), emphasizes the role of affordability in driving the growth of build-to-rent homes. "The biggest hurdle to buying a home for 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."
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, while Austin and San Antonio ranked No. 6 and No. 8 respectively. Austin is expected to build 4,313 new single-family rental homes in 2025, while San Antonio is expected to build 2,994 units.
Top 10 U.S. Metros Building the Most New Rental Homes in 2025
- Phoenix, Arizona – 13,113 units
- Dallas, Texas – 8,470 units
- Atlanta, Georgia – 7,563 units
- Charlotte, North Carolina – 7,351 units
- Houston, Texas – 4,613 units
- Austin, Texas – 4,313 units
- Orlando, Florida – 4,245 units
- San Antonio, Texas – 2,994 units
- Raleigh, North Carolina – 2,923 units
- Huntsville, Alabama – 2,852 units
Conclusion
The growth of build-to-rent homes in Texas, particularly in Houston, is driven by a combination of factors, including a healthy job market, remote work flexibility, and business-friendliness. As the demand for affordable housing continues to rise, it is likely that we will see even more growth in the build-to-rent sector in the coming years.
Frequently Asked Questions
Q: What is the definition of build-to-rent homes?
A: Build-to-rent homes are single-family homes that are built specifically for rent, with features such as private backyards, community amenities, and professional property management.
Q: Why are build-to-rent homes becoming more popular?
A: Build-to-rent homes offer an affordable alternative to buying a home, with the added benefits of community amenities and professional property management.
Q: Who are the target markets for build-to-rent homes?
A: The target markets for build-to-rent homes are typically Millennials and Gen Z, who are attracted to the affordability and flexibility offered by these types of communities.
