Build-to-Rent Home Construction: A Popular Choice in DFW 

build-to-rent home construction

The US real estate market has experienced a surge in BTR demand (or you can say a build-to-rent home). More and more people are opting for this easy rental solution. 

According to a report, almost 15 thousand build-to-rent units were constructed nationwide in 2022. Dallas Fort Worth took the lead with 2774 BTR units – which was a 441% increase over the last year!

But can we say the same for 2023? Are build-to-rent homes still famous in DFW or is there a decline in trends? In today’s post, we will answer all of these questions so that you can make the right decision for your DFW investment property!

What is Build-to-Rent Home Construction?

Build-to-rent homes, often abbreviated as BTR, are purpose-built properties designed for long-term rental. This means that people can rent the residential property for several years, unlike the standard short-term leases. 

A BTR home community appears just like any other neighborhood. You will have professional management, high-end amenities, complimentary maintenance services, and every other benefit that regular communities get. 

The only difference is that you don’t have to pay hefty mortgage installments to have a long-term home. You can live for up to 10 years by paying the agreed monthly rent. This gives a huge sense of stability and security in today’s economic situation. 

BTR home developers and investors also find this an appealing option for passive income, especially in high-demand areas. They have property ownership (and the value only increases with time) as well as a stable monthly income from the rent.

Types of BTR Homes in DFW

Single-Family HomesStandalone houses are built for long-term rental, offering privacy and space similar to traditional homeownership.
TownhousesTypically multi-story homes share walls with adjacent units. They provide a balance between space and community living.
ApartmentsThese are units within a larger building, varying from studios to multiple bedrooms. They offer a range of layouts and sizes to accommodate different households.
Duplexes & TriplexesMulti-unit buildings are divided into two or three separate residences, each suitable for individual rentals.

Are Build-to-Rent Communities Still Famous in DFW?

Yes, the build-to-rent home industry is booming in DFW right now. This place has added around 4,000 BTR properties to the market between 2017 to 2022, making it the second-largest supplier in the country. And ever since the peak in 2022, the market is nowhere slowing down. 

However, the growth of build-to-rent (BTR) home communities is more famous in the northern Dallas-Fort Worth (DFW) area. Over 1,000 BTR units have been built there since 2016 – which makes it one of the busiest areas for this type of housing in the country.

It’s important to note that this growth didn’t happen overnight, and a lot of factors have contributed. For example, the region has been seeing a steady increase in people moving in, especially from California. This has driven up the demand for rental homes. 

Also, the existing BTR projects in the area are doing really well, with occupancy rates between 95% and 98%. This shows that there’s a strong demand for these homes. The rents are also competitive – ranging from $2,500 to $3,000 per month – which is higher than similar class-A apartments in the area.

So, it doesn’t come as a surprise why many developers are choosing the north over central and south DFW. Canvas, BB Living, and NexMetro/Avilla are some of the well-known names that plan to construct new BTR projects in DFW. 

For instance, the Painted Tree community is set to add 580 units across two new BTR developments, Avanta and Cyrene, starting in late 2023.

Taylor Morrison, through their Yardly brand, is also making a big impact in the Dallas market with seven projects underway. These are spread out in places like Denton, Celina, Anna, and Melissa.

Overall, there are nearly 5,000 BTR units in various stages of construction in the Dallas-Fort Worth area. This shows that BTR homes are still very much in demand and continue to be a popular choice for renters in the region

Interested in buying a build-to-rent home in Dallas Fort Worth? Contact us today!

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