Build-To-Rent Homes Are On The Rise In The South: What Developers Need To Know

Facing a 4.7-million-unit shortage and a steady flow of people moving south, the U.S. housing market is offering build-to-rent investment opportunities in 2026.

The U.S. saw a substantial rise in build-to-rent properties in the early 2020s, with 130,520 home starts in 2024, a 134% increase since 2019. The Sun Belt has been at the head of the pack, with 36,840 units in progress. 

BBL Building Co., a construction company with offices in Plano, Texas, and Tampa, Florida, has been contributing to this growth in the South. The company, which has been ranked No. 52 in Builder’s list of the top 100 homebuilders of 2025, has completed more than 8,000 BTR units in more than 40 communities. BBL Building Co. was among six companies that generated $4.2B in revenue from BTR completions in 2023, according to Pro Builder.

BBL Building Co. President Mark Lear said build-to-rent communities are changing how people think about long-term rental housing. Millennials and Generation Z are seeking flexibility in their housing choices, and empty nesters are looking for less maintenance as they value mobility over traditional homeownership. On average, single-family renters stay put for 5.6 years.

He said that when renters stay long-term, it reduces operating costs for developers. BTR also typically comes with predictably higher occupancy and rental rates. Occupancy for single-family rentals was at 95.1% in September, according to Point2Homes.

“Today’s housing market puts homeownership out of reach for many,” Lear said. “First-time homebuyers face tough challenges as they struggle to save for substantial down payments while managing student loans and other financial commitments. Build-to-rent developers can address these affordability issues.”

BTR communities are attractive for renters who want the perks of a single-family home while also having communities, he said. These features include privacy, parking, private yards or patios, community green spaces and outdoor gathering spaces, pet-friendly policies and outdoor dog parks, and resort-style amenities.

BBL Building Co. Director of Southeast John Jones said that since this is a relatively new housing product, developers looking to build to rent would benefit from partnering with civil engineers, architects and contractors with experience.

“Some communities have a hard time navigating the differences between single-family and multifamily,” he said. “We’re often advocating for the developer during the entitlement and permitting process and sharing our lessons learned and approach with the various community agencies.”

When choosing a site for development, Jones said that in addition to how much the land costs, developers should consider the location. Building near a highway, workplaces, dining, shopping and schools is highly desirable.

They should also consider the site layout: if the space is dense enough to accommodate the number of units they need and if the area has utilities already or if off-site work may be needed.

BBL Building Co. uses a phased delivery approach, in which developers can rent out the homes that are ready in phases, before construction of the entire community is complete.

Jones said the first turn would include the club and leasing building and several homes that are used as models. The following phases will be completed on an agreed-upon schedule. 

He said BBL Building Co.’s field superintendent and assistant supers manage more than 100 skilled tradesfolk on a project, ensuring quality, safety and adherence to the schedule.

“We often manage over 80 single inspections in a day since each house is issued its own permit,” he said. “This makes the delivery of BTR more complex than traditional garden multifamily and requires a disciplined approach between all of the trade contractors on the project.”

Lear said BBL Building Co. serves as a partner to its customers, and much of its work is for repeat customers working in multiple states. The firm focuses on providing a consistent construction experience wherever its customers choose to build. It has active projects throughout Texas, Florida, Arkansas, Oklahoma, Georgia and the Carolinas.

“Build-to-rent is not a passing trend. It’s the next evolution in American housing, and now is the time for investors, developers and lenders to get involved,” Lear said. 

This article was produced in collaboration between BBL Building Co. and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.