The real estate market is evolving, and one of the most notable trends reshaping housing demand is Build-to-rent (BTR). This emerging submarket focuses on constructing single-family homes and communities designed specifically for long-term rental rather than sale. Offering the appeal of homeownership without the financial burdens of buying, BTR is gaining traction among investors, builders, and renters alike.

First, the “cottage-style” BTR community is a relatively recent innovation that has gained significant national attention in the U.S. over the past decade. This model is seen as essential because it fills a long-standing gap in the housing market—it appeals to renters who want or need the privacy and space of a single-family home, including private outdoor areas and no shared walls with neighbors.

According to Forbes’ Built-To-Rent Development Forecast: New Supply To Fall Short Of Demand This Year, demand for this model is projected to outpace supply in both 2025 and 2026.
​
​Build-to-rent properties are distinct from traditional rental homes because they are purpose-built from the ground up with renters in mind. Unlike rehabbed properties, these homes feature high-end finishes and modern amenities from day one. According to data from Arbor Realty Trust, Inc., build-to-rent homes accounted for 8.2% of all single-family construction starts in 2024—highlighting the segment’s rapid growth.

​For investors, BTR presents an attractive opportunity due to its low-risk profile and strong tenant demand. Rising home prices and mortgage rates have made purchasing a home unattainable for many, pushing more people toward renting.

BTR communities appeal to this demographic by offering single-family living without the financial burdens of ownership, such as property taxes, maintenance, and HOA fees. These properties also tend to lease quickly and deliver stable returns, with exit cap rates comparable to those of traditional multifamily assets.

Read more: Benefits of Build-to-Rent in the Face of High Mortgage Rates

Large real estate and investment firms are leading the charge in BTR development, funding entire communities of single-family rental homes. Builders entering this space recognize the growing demand for rental properties that mimic homeownership—providing space, privacy, and community amenities without the high upfront costs.

​Some BTR communities have the look and feel of upscale multifamily complexes, featuring shared amenities like pools, clubhouses, and fitness centers. But unlike apartments, each household occupies a standalone home, often with its own private yard.

Builders also prioritize low-maintenance living, handling repairs, landscaping, and pest control—a major draw for renters who want a home-like experience without the responsibilities of ownership.

For tenants, BTR offers the best of both worlds: the space and comfort of a single-family home combined with the convenience of renting. These properties are newly constructed, meaning they come equipped with modern kitchens, smart home technology, in-unit laundry, and energy-efficient designs.

​Beyond the physical features, Build-to-rent (BTR) communities are often located in desirable neighborhoods designed to foster a true sense of community, with shared green spaces, playgrounds, and pet-friendly areas. Some developments are even planned with walkability in mind, reducing reliance on cars and encouraging social interaction. For renters who aspire to own a home but aren’t yet ready—or able—to buy, BTR offers an attractive alternative.

The rise of BTR is closely tied to broader economic trends. Soaring home prices, stagnant wages, and strict mortgage requirements have locked many would-be buyers out of the market. BTR fills this gap by offering affordable, high-quality rental housing tailored to individuals and families who might otherwise struggle to find suitable accommodations.
​
​As more builders and investors recognize the potential of BTR, the sector is expected to expand further. Whether driven by investment opportunities, shifting tenant preferences, or economic necessity, Build-to-rent is redefining what it means to rent a home—and could become a permanent fixture in the future of housing.
​
​If you like the idea of owning high-quality build-to-rent (BTR) properties in prime Florida locations—without lifting a finger—consider passive investment opportunities with my partners at Southern Impression Homes (SIH). As North America’s leading BTR property development group, SIH specializes in constructing large-scale, mid- to high-end residential communities across Florida. With their top-tier property management services, you can enjoy the rewards of real estate investing—without the hassle.

​👉 Click here to get started today!

Dream of owning a vacation home in Florida, Mexico, or Europe?

Check out co-ownership options with our partner, Pacaso. You can enjoy your piece of paradise without breaking the bank, paying high carrying costs, or dealing with management hassles.

Unlock the path to affordable luxury living by grabbing a free copy of my book, From Dream to Reality: Your Path to Affordable Luxury Living in Florida for Canadians. This guide is more than just a book—it's your key to owning a vacation paradise in Florida, Mexico, or Europe, whether you're in Canada or the U.S. Filled with expert insights and practical advice, it shows you how to own your second home without the burden of overwhelming financial stress—no debt, no high ongoing costs.

Take advantage of this incredible opportunity—it’s yours for free!

Claim your free copy now and receive a $200 Hotel Savings Card.

​​​​​​​​Unlock exclusive bonuses at FloridianHome.ca. Enjoy complimentary vacations to Mexico and Hawaii, plus luxurious private yacht cruises around St. Maarten and St. Barts — all waiting just for you!