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If you’ve been paying attention to real estate trends, you’ve probably heard the term Build-to-Rent (or BTR) a lot lately. BTR is one of the fastest growing strategies in the investing world and is poised to become even more popular in the coming year.
All the buzz may have you wondering: what is BTR investing? Why is it so popular? What are the benefits? And, most importantly, how should you leverage it to grow your portfolio?
To answer these burning questions, we’ve compiled a list of the top 26 things that investors should know about BTR housing in 2026.
1. Build-to-Rent housing is precisely what it sounds like.
Build-to-Rent housing literally means housing that is built to be rented out upon completion rather than sold on the retail market.
2. The BTR concept has actually been around for a long time.
Housing purpose-built for rental is nothing new. Institutional investors and developers have been building new condominium complexes and apartment buildings with rental units for decades. It’s a time-tested investment strategy.
3. The rise of BTR single-family homes has made BTR a viable strategy for individual investors.
Newly built single-family detached houses have traditionally been marketed and priced for retail buyers who plan to move in themselves. Nowadays, developers are actively courting individual investors with incentives that make new-builds economically viable acquisitions.
4. Changing renter profiles are fueling demand for BTR homes.
It used to be that people rented apartments before they had kids and then bought houses when they were ready to start families, but with homeownership sailing further out of reach in recent years there are more young families seeking rentals than ever before. These renters still want the space, functionality, and privacy of single-family houses, making BTR properties particularly attractive options.
5. You can own BTR properties in rental-only developments.
Rental-only developments are purpose-built to cater to landlords and tenants. Properties are low-maintenance with simple layouts. Amenities such as playgrounds and swimming pools are often installed to attract residents.
6. Or you can own BTR properties in developments with a mix of homeowners and renters.
Mixed developments are primarily geared towards homeowners and tend to be more stable, which is great for property values and long-term appreciation. Plus, it is easier to scale within the same development over time rather than having to buy multiple properties at once.
7. Brand new properties = big savings on maintenance.
BTR properties benefit from having everything in mint condition. The roof, HVAC, siding, wiring, plumbing, flooring, and appliances should all last for years without needing repair or replacement. And if anything does go wrong? All the warranties are brand new as well.
8. You’ll save on operating costs, too.
Brand-new appliances, windows, and insulation are energy-efficient, reducing overhead for both you and your tenants.
9. You can start renting BTR’s right away.
Buying a move-in-ready property means that you can rent it out immediately. That’s less time covering overhead, less lost rental income, and more cash flow.
10. Renters love living in new-build homes.
Renters are often accustomed to viewing homes where the windows are old and drafty and the power outlets have six layers of white paint on them. Modern appliances and layouts, smart home features, and brand-new everything have massive appeal.
11. BTR renters are more likely to renew their leases.
The demographics who gravitate towards BTRs (e.g. families, high earners) generally don’t like to move every year and are already very likely to re-sign leases. Add in the exceptional condition of BTR properties, and they are even more likely to want to stay put for a long time.
12. BTR homes command premium rents.
It’s a lot easier to justify a higher asking price when tenants can be assured that everything in a house is clean and new.
13. New homes are better suited to modern lifestyles and ways of working.
The rise of remote work over the last several years has led to a cultural shift in how people view and use their homes. BTRs are better suited to the lifestyles of high-earning individuals who often work from home and require their houses to be functional living and working spaces.
14. Housing oversupply is making BTR properties cheaper than resale in some regions.
Metros in the South and Southwest have responded to population increases with massive building sprees, and developers are now trying to offload fresh inventory with buyer incentives. Meanwhile, homeowners are sitting tight as they wait for lower interest rates, making resale listings scarcer and more expensive. In these places, BTR properties make the most economic sense for investors on every level.
15. BTRs can mean greater management efficiency.
Owning multiple properties within the same development helps simplify operations. Planned communities are often managed by a single management company that takes care of things like snowplowing and maintenance of communal areas and amenities. Plus, you’ll only have one set of HOA regulations to worry about and won’t have to drive all over town for property inspections.
16. Investing in BTRs can make it easier to scale your portfolio.
The incentives offered by some developers make it simpler and more affordable to acquire multiple properties in one go. Even if you buy properties one at a time over several years you’ll have better comps and greater certainty if they’re in the same development as assets you already own.
17. BTRs can offer great value-add opportunities.
Investors who purchase BTR homes prior to completion have the opportunity to choose value-add features that will force appreciation and create instant equity upon re-appraisal.
18. New-builds have excellent long-term appreciation prospects.
Neighborhoods tend to become more sought after as they become established. Buying into a community early means you stand to reap the maximum benefits of property value appreciation.
19. You won’t have to worry about unknowns in a property’s history.
Since you’re the original owner, you’ll be able to track a building’s operating history from day one. If there’s a flood in the basement or a fire in the kitchen, you’ll know exactly when and why it happened and what was done about it.
20. BTRs offer more predictable cash flow.
High demand and exceptional comps from properties within the same development take the uncertainty out of financials.
Pro Tip- Use tools like Evernest’s free rental analysis if you need a starting point.
21. You can implement the BTR model on any scale.
You can invest in BTR properties one at a time or you can acquire a large number of properties in a single purchase.
22. BTRs come with multiple exit strategies.
If you acquire a BTR and end up needing an exit strategy that isn’t a long-term hold, no sweat. Strong comps, quality tenants, and predictable cash flow make these assets appealing to other investors. If the property is in a mixed homeowner/renter development, you can offer it to retail buyers as well.
23. You’ll have fewer day-to-day worries.
Not only will a brand new property save you on maintenance costs, but it will also save you from maintenance headaches. With everything set up to run smoothly, you’ll field far fewer inquiries about repairs and replacements, giving you more time to focus on growing your business and enjoying your life.
24. You can source BTR properties easily through an online marketplace.
Unsure of where or how to acquire BTR properties in your area? Companies like Lennar allow you to search for new-build rentals easily and even offer resources for financing these types of investments.
25. Demand for BTRs is only getting stronger.
High interest rates and high asking prices have become the norm, putting homeownership out of reach for countless would-be buyers. Demand for new-build single-family houses has increased 102% as the types of people who would have purchased them in years past are now renting them in ever-greater numbers. With these trends forecast to continue, there will be more high-quality, stable tenants seeking exceptional housing options in the coming years.
26. 2026 is the year to start adding BTRs to your portfolio.
Changes in real estate markets, lifestyles, work conditions, and culture are reshaping old assumptions about typical renter profiles and revolutionizing how investors respond to consumer demands. Savvy investors are capitalizing on the unprecedented number of high-earning, stable tenants in need of quality housing and see the BTR model as the way forward. If you’re ready to level up your investment game, 2026 is the year to invest in BTR properties.
