New Home Construction is Cooling, But “Built-for-Rent” Still Booming in Charlotte

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Charlotte Stories
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A new report from Apartment List examines the latest trends in built-for-rent homes: large developments of single-family homes designed to be rented, not owned.

Due to rising home prices, this type of construction has more than tripled in the last decade because many families want the benefits of living in a single-family home, like extra space and a backyard, but cannot afford to buy one. Last year alone, nearly 1-in-10 new homes were built to be rentals.
Charlotte’s BTR market saw one of the biggest increases in America, with our metro boasting the 5th greatest number of build-to rent homes completed last year, with a 36% year-over-year growth.

  • 1,714 BTR units are currently under construction in Charlotte, which is the 5th largest number of upcoming homes for rent in the whole country.

  • By contrast, Raleigh-Cary’s BTR market is way slower, adding 477 build-to-rent homes in the last five years – the equivalent of the 2022 construction in Charlotte. Statewide, no other metro excels in this niche.

  • Nationwide, eight of top 10 metros for build-to-rent construction hit 10-year highs in 2023, which was the strongest year on record for this niche.  Phoenix stands out for the largest number of units completed between 2017 and 2023, followed by Dallas, Detroit and Houston. More so, roughly 44,700 homes are now under construction across the country – triple the number of new homes completed last year.

What do you think about the new trend?