As homeownership becomes an increasingly distant dream for the average American, the housing market is responding by developing entire build-to-rent (BTR) communities. The trend is especially pronounced in metros like Atlanta, which recorded the third-highest number of build-to-rent units developed over the past year.
Highlights
- Atlanta is one of the hotspots for the boom in the built-to-rent sector of the country’s real estate market.
- The city saw the completion of 3000+ single-family home rental units in 2024, and more than 6000 more BTR units are on the way.
- The trend in Atlanta is a reflection of the rise in demand for rental housing across the country, especially in the southern markets.
Atlanta Adds 3,000 Build-to-Rent Homes in 2024
Atlanta saw 3,035 single-family rental homes completed in 2024. This is a 15% year-over-year increase from the 2,651 units delivered in 2023. The city’s build-to-rent sector is experiencing an unprecedented boom as a total of 7,553 BTR homes have been completed since 2019, representing a 1,381% growth over five years.
The analysis says that the addition of these new house rentals coincides with the city’s population growth. Atlanta is one of the fastest-growing cities in the country and welcomed more than 75,000 new residents in just one year.
Atlanta ranked third nationally, just behind Phoenix and Dallas, in build-to-rent completions last year, according to the analysis. Phoenix led with 4,460 units completed, followed by Dallas with 3,197.
Moreover, Atlanta holds the fourth position with a total of 8,100 BTR units (as of 2024). The top three metros with the most number of BTR units are Phoenix, Dallas, and Houston, with approximately 17,000, 15,000, and 9,000 units, respectively.
Close to 7,000 Build-to-Rent Units in the Pipeline for Atlanta
Atlanta also ranks third in the number of build-to-rent units in the development pipeline. As per the analysis, 6,644 units will be completed and available for renters in the near future.
What’s the Allure of Single-Family Rental Homes?
Flexibility and lower maintenance costs are the main reasons many people prefer renting single-family homes. Add to that the extra comfort and privacy that these homes offer, making them an appealing choice for tenants.
Additionally, many who want to own a home in Atlanta may find it far out of their reach. The average home cost in Atlanta is in the low $400,000s, which is unaffordable for a large number of Atlantans.
The analysis of the growth in the single-family rental (SFR) sector was conducted by Point2Homes.com using March data from Yardi Matrix, a real estate research firm. As per the analysis, 39,000 new houses were built for rent in 2024 across the country, marking a 15.5% increase from 2023.
