Atlanta Ranks 3rd in Nation for Build-to-Rent Homes
A Boom in Build-to-Rent Homes
Over the past several years, metro Atlanta has made a name for itself as a national front-runner in constructing homes for renting rather than for ownership. The surge also made the area rank third in the U.S. for the amount of build-to-rent, or BTR, homes erected in 2023, according to a fresh study by RentCafe. The buzzing metro Atlanta area saw the completion of 1,981 BTR homes last year alone, marking a decade’s high. Only Phoenix, with 4,030 units, and Dallas, with 2,694, had more.
The past half decade has seen BTR construction in metro Atlanta skyrocketing by a whopping 646 percent, culminating in over 3,500 homes. This has firmly established Atlanta as the third-highest in the nation in terms of volume of BTR construction over that period. From 2014 through 2018, a mere 217 BTR homes sprung up across metro Atlanta, demonstrating how the trend has rapidly gained momentum in recent years.
Critics vs Proponents of BTR Homes
Despite its rising popularity, the concept of BTR homes has drawn flak from municipalities and residents in metro Atlanta. Critics argue that it uses up valuable, scarce land for housing that doesn’t give tenants an opportunity to build equity through homeownership. On the flip side, proponents claim that this type of housing offers more flexibility than mortgages and is crucial in fluid markets like metro Atlanta.
RentCafe, a renowned national apartment search website, labels BTR as an “adaptation of the American Dream.” Currently, a record 45,000 BTR units are in the U.S construction pipeline and are expected to be ready over the next few years.
The study, however, only took into consideration BTR communities comprising 50 single-family units or more, leaving out any converted rentals in smaller or individual properties.
Atlanta – The Leader in Rental Activity
An earlier study by RentCafe predicted Atlanta as the leading city for rental activity in 2024, attributing the city’s “transformed Midtown and IT powerhouse Georgia Tech” as primary factors in keeping the city in the sights of potential renters.
Moreover, with over a third of US households preferring to rent rather than own homes, the BTR sector has gained significant momentum. Atlanta, with its booming BTR market, offers a unique insight into how this trend could shape the residential property landscape across the U.S over the next decade.
Looking Forward
While the debate between critics and proponents of BTR homes continues, it’s clear that this growing trend is reshaping housing constructions in Atlanta. It remains to be seen how this trend will impact the overall housing market, but for now, Atlanta stands on the frontline of BTR construction, making it an interesting area to watch over the next few years.
