Why Florida and Texas Lead the Nation in Build-to-Rent Potential
Wednesday, November 05, 2025
The build-to-rent (BTR) trend has exploded in recent years, offering real estate investors a powerful alternative to traditional rental property strategies. But as with any investment, success starts with choosing the right market—and two states continue to lead the pack: Florida and Texas.
Thanks to a combination of economic resilience, population growth, affordability, and long-term demand, both states have become magnets for BTR developers and investors looking to capitalize on strong rental demand and property appreciation potential.
- Strong Economic Growth: Florida and Texas are two of the most business-friendly states in the U.S., consistently attracting new corporations, start-ups, and established industries. Their pro-growth policies, low taxes, and minimal regulatory burdens create fertile ground for economic development. This growth, in turn, attracts skilled workers from around the country—people who need homes to rent while they settle, work, and build their lives. Markets that show sustained economic expansion become natural hotbeds for BTR success. Key takeaway: Rent-to-build works best in economies that are growing faster than average—and Florida and Texas are leading the way.
- Rapid Population Growth: You can’t build rental homes for people who aren’t there—and Florida and Texas have no such problem. Both states have seen a steady, even explosive, increase in population over the past decade, with many of their cities ranking among the fastest-growing in the United States. People are drawn by job opportunities, warm weather, lower taxes, and a higher quality of life. Importantly, this growth outpaces the supply of new homes, creating strong long-term rental demand. For BTR investors, that’s a critical checkbox. Key takeaway: Population growth is the fuel that drives a healthy rental market, and these two states have plenty of it.
- Rental Affordability Meets Investment Value: One of the biggest advantages Florida and Texas offer is value for money. In many cities within these states, investors can purchase high-quality homes for the same price (or less) than lower-end properties in larger urban markets. At the same time, the rental income in these emerging areas is often higher, creating an excellent return on investment. For example, our partner, Southern Impression Homes — a leading BTR developer — focuses exclusively on markets where the rental income-to-cost ratio is highly favorable, ensuring long-term profitability for their investors. Key takeaway: High rental returns and reasonable prices make Florida and Texas unbeatable from a value standpoint.
- Desirability and Lifestyle Appeal: In real estate, desirability isn’t just a bonus—it’s a multiplier. People are naturally drawn to areas that offer a high quality of life. Given the choice, many would prefer to rent a brand-new home in a vibrant, growing community rather than settle for an outdated apartment in a crowded urban center. Both Florida and Texas offer this appeal, with everything from beautiful beaches and outdoor recreation to family-friendly suburbs and thriving cities. They truly check all the boxes. Key takeaway: People don’t just need homes—they want homes in places they love. Florida and Texas deliver on that desire.
- Favorable Supply and Demand Cycles: Perhaps most importantly, Florida and Texas both are experiencing chronic housing shortages. In real estate, demand is good—but unmet demand is even better. For investors, this imbalance leads to strong occupancy rates, rising rental prices, and long-term stability—precisely what you want in a build-to-rent (BTR) investment. Due to long construction cycles, zoning challenges, and infrastructure constraints, demand is expected to outpace supply for at least the next decade. This creates a compelling long-term opportunity for build-to-rent projects. Key takeaway: When demand outpaces supply, rent-to-build becomes not just viable—but essential.
Final Thoughts
Final Thoughts
Florida and Texas aren’t just “hot” markets—they’re strategically sound, data-driven investment environments. If you're considering entering the build-to-rent space, these two states offer a powerful combination of economic strength, population growth, affordability, and lifestyle appeal.
With the right market selection, your build-to-rent investment can generate consistent rental income, long-term appreciation, and minimal vacancy risk. And in the current landscape, no states offer a stronger foundation than Florida and Texas.
Top Markets to Watch in Florida
Top Markets to Watch in Florida
Our Florida partner, Southern Impression Homes(SIH), operates only in markets where they project at least 10 years of favorable supply and demand dynamics—giving investors confidence that their properties will remain in high demand for years to come.
They target markets where investors can get more home for their money without sacrificing rental yield, focus on attractive neighborhoods, and build to high standards—ensuring tenants stay longer and investors benefit from lower turnover.
SIH identifies several top markets:
Key areas to watch include Northeast Florida (Jacksonville and Palm Coast), North Central Florida (Ocala and Inverness), and Southwest Florida (Port Charlotte and Fort Myers). Each of these locations meets strict investment criteria: sustainable job growth, a rising population, strong rental demand, appealing lifestyle amenities, and long-term growth potential.
If you're entering the BTR market, don't just build or buy anywhere—build or buy where the future is headed.
“The best investment on Earth is Earth... but only in the right location.”
— Adapted from Louis Glickman
Learn more about investment opportunities with SIH in Florida.
👉Click here to get started today.
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Hi, I'm Eugene
Founder of FloridianHome.ca
Hi, I'm Eugene
Founder of FloridianHome.ca
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