According to RentCafe, Phoenix leads the nation in the new build-to-rent boom, with 4,030 single-family homes for rent opening their doors in 2023. That’s almost half of the 9,345 units built in the last five years. Add to that the 7,236 units under construction that will come on the market soon.
What’s Driving the Trend?
Five factors are driving this recent trend:
- Phoenix has the land to build out, not up.
- It is one of the fastest-growing metro areas in the country.
- National investment firms appreciate the returns from build-to-rent communities.
- Many young families can’t afford to buy a starter home.
- Build-to-rent communities are easier to develop than apartment buildings, thanks to prefabricated steel building components.
What It Means to You
Buyers - Stay focused on your goal of homeownership as the best way to build equity and benefit from rising home prices.
Sellers - Your home’s value should increase since builders won't be adding as many build-to-own homes to the supply.
