FUNDING
Investor Review
Renters Rush in as BTR Homes Beat Buying WITH AFFORDABILITY FADING AND MOBILITY PRIZED, MORE AMERICANS ARE RENTING HOMES THEY ONCE ASPIRED TO OWN.
TOM HALLOCK
T he build-to-rent (BTR) sector is one of the strongest and most promising areas of the U.S. housing market right now. While new residential construction faces challenges
sentiments, and address localized supply-demand imbalances. At the same time, a combination of changes in tariff and immigration policies is creating turmoil and turbulence in the construction pipeline. As both labor and materials costs rise in the wake of this uncertainty, many developers and investors are responding by extending their schedules or reassessing their development plans. But this ”wait-and-see” approach isn’t necessary in all markets. Developers in the Sun Belt, for example, might be slowing down because of weaker absorption and high for-sale
inventory. But BTR activity is continuing in the Midwest and Northeast due to more favorable supply-demand dynamics and less new construction competition, both of which create more stable conditions for development. LOW CONFIDENCE, HIGH DEMAND Is weak consumer sentiment good news for BTR? Consumer sentiment improved for the first time in six months, climbing 16% from last month, according to the University of Michigan’s Consumer Sentiment Index Poll. However, it still remains well below
such as higher costs and unclear regulations, the high demand for
single-family rentals continues to attract both large institutions and mid-sized developers and investors to BTR projects.
POLICY FOG DRIVES HESITATION Heading into the latter half of
2025, developers and investors are adjusting their plans to address inflation, tackle changing consumer
60 | think realty magazine :: september - october 2025
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