A new rental report has revealed Texas is leading the nation with the highest single-family home rental construction growth, and Dallas-Fort Worth nearly topped the list of metros building the most new homes for rent.
The analysis from rental listings website Point2Homes examined construction rates and building permit data for single-family homes that are "located in build-to-rent, professionally managed communities" across America. For the purpose of the study, build-to-rent homes are defined as units thatdon't share any walls with other homes, and includes those that have shared walls but do not have neighbors above or below or have a direct-access garage.
According to the report's findings, Dallas' rental home construction rate is the 5th highest in the nation, and the metro area is expected to build 8,470 new single-family homes for rent in 2025.
The greatest share of rental homes – 1,816 units – are being built in neighboring Fort Worth, while Dallas proper is only expecting to build 64 new rental homes.
This is how many build-to-rent homes are being built across other DFW-area cities:
- 1,293 units – McKinney
- 876 units – Denton
- 696 units – Melissa
- 635 units – Anna
- 543 units – Garland
- 537 units – Celina
- 408 units – Princeton
- 251 units – Lavon
- 204 units – Ferris
- 200 units – Weatherford
- 176 units – Crandall
- 168 units – Crowley
- 166 units – Saginaw
- 134 units – Aubrey
- 96 units – Forney
- 85 units – Addison
- 65 units – Arlington
- 57 units – Red Oak
The report says Fort Worth will become the new hometown for one of the largest single-family rental communities, Living Fully Orchard Farms, which will develop 643 new construction homes. But Dallas-area rental communities aren't far behind.
"The second and third largest communities currently under construction in the Dallas metro are in Princeton and Melissa: Oxenfree at Princeton and Wolf Creek Farms will add 408 and 343 units, respectively," the report said.
Build-to-rent growth rates in Texas
Dallas' rental home construction helps make up the total 21,812 units that are planned or currently being built in Texas this year.
The report claims Texas' healthy job market, remote work flexibility, and its business-friendliness are the top reasons why the build-to-rent growth has soared so high.
Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix (Point2Homes' sister company), says affordability is another major factor.
"The biggest hurdle to buying a home for [build-to-rent] BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market," Ressler says. "On average, renting a BTR unit is cheaper than buying a starter home. Recent reports indicate that renting can save one around $1,000 per month compared to buying. This is largely due to high mortgage rates and elevated home prices."
Ressler adds that the target markets – Millennials and Gen Z – are increasingly interested in new single-family home rentals to avoid the hurdle of paying high property taxes while still managing other debts like student loans. This also allows them to remain close to the city in a nearby suburb, rather than in rural areas.
"As urban areas become more congested and expensive, there’s a growing trend towards suburban living," Ressler said. "BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers."
Other Texas metros
Texas cities dominated the top 10 U.S. metros with the greatest build-to-rent growth rates. Houston ranked No. 5 nationally with 4,613 new homes being built for rent in the metro.
Meanwhile, Austin and San Antonio ranked No. 6 and No. 8 respectively. Austin currently has 4,313 new single-family rental homes in the pipeline in 2025, while San Antonio is expected to build 2,994 units.
Phoenix, Arizona topped the nation with the No. 1 highest new rental home construction rate. The Valley of the Sun is expected to complete 13,113 build-to-rent homes in 2025.
The top 10 U.S. metros building the most new rental homes in 2025 are:
- No. 1 – Phoenix, Arizona
- No. 2 – Dallas-Fort Worth, Texas
- No. 3 – Atlanta, Georgia
- No. 4 – Charlotte, North Carolina
- No. 5 – Houston, Texas
- No. 6 – Austin, Texas
- No. 7 – Orlando, Florida
- No. 8 – San Antonio, Texas
- No. 9 – Raleigh, North Carolina
- No. 10 – Huntsville, Alabama
