renting in the big city

DFW nearly tops list of cities building most new homes for rent

Dallas is building more single-family rental homes than nearly every other U.S. city.

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 that don'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

rentals construction real estate houston

not too shabby

Dallas ranks No. 15 nationwide on new affordability and housing report

Reunion Tower

Downtown Dallas skyline, all lit up.

A new national real estate report card has given Dallas-Fort Worth a passing grade for housing demand and affordability.

Realtor.com's first-ever Metro Affordability & Homebuilding Report Card compared the 100 largest metropolitan areas in the U.S. based on two scores that measured the most important factors for potential home buyers: an "Affordability Components" score that examined the current affordability of housing for residents, and a "Homebuilding Components" score that analyzed the rate of new home construction to meet future demand. Both scores were then used to calculate the final score and assigned a letter grade.

Only 10 total U.S. metros, including Houston (No. 4) and Austin (No. 6), received grades in the "A" range (A+, A, A- ) representing the most balanced locales for "favorable current affordability conditions and healthy future inventory growth to sustain them."

"Homebuilding and affordability are inseparable, and if we want to improve affordability in a lasting way, we need to build more homes," said Realtor.com chief economist Danielle Hale. "The metros at the top of these rankings show that buyers benefit most when communities pair homes that are attainable for today's local earners with enough new construction to support tomorrow's demand."

Only two metros earned "A+" grades with a total score of 77.5 or higher: De Moines-West DeMoines, Idaho (83.4 points) and Raleigh-Cary, North Carolina (82.8 points).

Dallas-Fort Worth earned a "B+" overall with a total score of 67.9 points, an "Affordability Components" score of 54.5 points, and a "Homebuying Components" score of 81.3 points. The DFW Metroplex also ranks 15th in the national ranking of the best metros for affordability and housing.

Five more U.S. metros earned the same rating: Augusta-Richmond County, Georgia-South Carolina; Baton Rouge, Louisiana; Madison, Wisconsin; Wichita, Kansas; and Louisville, Kentucky-Indiana.

Realtor.com's report said the Dallas-Fort Worth-Arlington metro has a median household income of $88,783, and home listings have a median price of $426,446. The report's findings also show that newly built homes in the region cost 8.9 percent more than existing homes on the market.

DFW has a 1.76 housing permit-to population ratio, meaning the metro permits 76 percent more new homes than what would be considered typical based on its population and national average construction levels.

DFW's "Realtors Affordability Score," or the share of for-sale inventory affordable to households at different income levels, is 0.639, or slightly lower than the national average of 0.675.

Housing market grades across other Texas metros
Houston and Austin were the only two Texas metros to earn a grade in the "A" range.

Houston outperformed every Texas metro for housing and affordability with its solid "A" rating. Newly built homes in the Houston area cost about 7 percent more than existing homes on the market, and the metro has a 1.88 housing permit-to population ratio.

Austin earned an "A-" with a combined score of 72.5 points. Unlike many other U.S. metros, newly built homes in the Austin area are actually more affordable than existing homes on the market. Austin has a negative new construction premium, where new build homes are 6 percent cheaper than existing ones.

The Austin metro also has a permit-to-population ratio of 2.37. Combined with the negative new construction premium, these factors signal that "builders are delivering homes at a rate well above the metro's population share — and at prices slightly below existing homes."

This is a snapshot of the factors that impacted Austin's grade:

Realtors Affordability Score: 0.639
Median listing price: $501,200
Median household income: $102,412

Elsewhere in Texas, San Antonio-New Braunfels and McAllen-Edinburg-Mission both earned "C+" ratings, while El Paso's housing market performance was only worthy of a "D" grade.

The top 10 U.S. metros with the highest-performing housing markets are:

No. 1 – De Moines-West Demoines, Idaho (A+)
No. 2 – Ralgieh-Cary, North Carolina (A+)
No. 3 – Columbia, South Carolina (A)
No. 4 – Houston, Texas (A)
No. 5 – Indianapolis, Indiana (A)
No. 6 – Austin-Round Rock-San Marcos, Texas (A-)
No. 7 – Jacksonville, Florida (A-)
No. 8 – Oklahoma City, Oklahoma (A-)
No. 9 – Palm Bay-Melbourne, Florida (A-)
No. 10 – Columbus, Ohio (A-)

real estate housing housing market realtor.com