Home >Articles >Build-to-Rent Housing Sees Dynamic Growth in 2023

Build-to-Rent Housing Sees Dynamic Growth in 2023

Feb 27, 2024 BuildersGeneralProvidersRaters

There is an emerging market force for Build-To-Rent where developers arrange with builders to construct single-family homes as rental property.

The National Rental Home Council (NHRC) reported that in 2023 new homes of Build-to-Rent increased to nearly 25,000 homes.  NHRC reported that housing markets with the highest number of Build-to-Rent completions include Phoenix (3,808), Dallas/Ft. Worth (2,694), Atlanta (1,872), Charleston (1,044), and Austin (775).

The following is a listing by state of the number of new Build-to-Rent homes that were built in 2023:

The emerging Build to Rent Market offers an exciting opportunity for the HERS® industry.

One of the nation’s largest Build-To-Rent developers AMH has all their homes HERS-rated. The company reported that in 2022, its average HERS score was 61.9 among its 2,183 newly built homes. AMH has produced a short video on their HERS® Index commitment, AMH HERS Scores

To better track these emerging opportunities and develop recommendations on how RESNET and the HERS industry should position itself to take advantage of them, RESNET® Executive Director Steve Baden has appointed a RESNET Build-To-Rent Advisory Group. The group comprises a select group of rating companies and builder representatives who are active in this industry area.

“Build-to-rent housing is quickly emerging as an essential, and highly desirable, sector of America’s housing market,” said David Howard, CEO of NRHC. “With the U.S. housing market facing inventory and supply shortages of near historic proportions, leasing a newly built single-family home in a dedicated community with a range of neighborhood and in-home amenities is an option that appeals to an increasing number of families.”

NRHC CEO David Howard serves on the RESNET Build-To-Rent Advisory Group.