Build-to-Rent Homes: What Are They, and Why Are They So Popular?

Key Takeaways Build-to-rent (BTR) is a type of housing generally built in large-scale communities that resemble for-sale neighborhoods. BTR homes offer some of the benefits of homeownership without the maintenance—but there are drawbacks. Single-family rentals have grown in popularity recently for their space, relative affordability, and flexibility. Build-to-rent homes have faced criticism for their role in the housing supply crisis. Build-to-rent (BTR) homes have exploded in popularity since the pandemic, with consumers eager for single-family homes without the high costs or hassle associated with ownership. Today’s slow and expensive housing market has been a major catalyst. These homes are typically built in professionally managed communities and offer many of the perks of a traditional house—more space, privacy, and a yard—without requiring a mortgage or down payment. For developers and investors, they offer another way to capitalize on strong demand for single-family rentals. So, whether you’re looking for a home to rent or considering BTR as an investment, there’s plenty to weigh. Read on to learn more about whether BTR properties are right for you, why they’re in the news t...