Understanding the Build to Rent Model
Build-to-rent (BTR) housing refers to residential properties—often entire neighborhoods—designed specifically to be rented, not sold. Unlike traditional single-family rentals—typically built or owned by individual landlords—Build-to-Rent (BTR) homes are developed from the ground up by a single builder or institutional investor, to rent them out within a unified community.
BTR homes often share amenities like parks, playgrounds, fitness centers, and community services that create a neighborhood feel. As affordability concerns push more people toward renting, Build-to-Rent (BTR) is emerging as a smart solution—offering the comfort and privacy of a standalone home with the flexibility of rental living.
Strong Demand in Family-Focused Communities
BTR homes offer a cost-effective and comfortable stepping stone toward future homeownership. As of 2025, the demand is surging, with over 110,000 BTR homes under construction, reflecting a 53.5% year-over-year increase.
With rising home prices and elevated interest rates, BTR communities have become especially attractive to Americans aged 35 and older, many of whom are first-time homebuyers or families seeking long-term rental options. These renters value the space, privacy, and community access that BTR homes provide, without the financial burden of a mortgage.
The Advantages of Investors in Build to Rent Housing
BTR housing offers advantages for investors and developers in terms of a long-term ROI, especially when the single-family homes, duplexes, ADUs, and multi-family BTR options are newly built.
- Reliable Cash Flow: BTR investments are designed to generate rental income to cover loan payments, taxes, and property upkeep, allowing investors to earn money with minimal costs.
- Operational Efficiency: Property management becomes more streamlined and cost-effective with multiple units in the same neighborhood, ultimately boosting ROI.
- Brand New Properties, Low Maintenance: New Construction requires less immediate repair and includes builder warranties, which drive down costs in the first few years.
- Long-Term Value: Build-to-Rent (BTR) homes are strategically developed in population-dense areas, helping to reduce tenant turnover and vacancy rates, making them a smart, sustainable long-term investment.
- Advantages of Renters in Build-to-Rent Housing
BTR homes are beneficial for tenants, too. As homeownership becomes more expensive, people are adapting to homes they can afford without the burden of a mortgage, as reflected in the statistics below.
- Renting a Starter Home is Cheaper: A starter home’s rental cost is $1,091 more affordable each month than owning one, making BTR a budget-friendly option.
- More People Prefer Renting: Rental households grew by 1.9% in 2024, more than double the rate of owner-occupied households.
- Fewer People Plan to Buy a House in the Next Year: The percentage of renters who plan to purchase a home next year decreased from 63% in 2023 to 56% in 2024, showing a shift in priorities.
- People are Motivated by Affordable Rent: 43% of BTR residents would relocate for a more affordable rent, while only 28% would do so when they have saved enough money to buy a home.
Partnering with HiLine Homes for Build to Rent Success
The BTR market continues to grow as more people choose renting over buying, driven by rising home prices and affordability concerns. BTR homes offer the comfort and privacy of a standalone house at a lower cost than a mortgage, making them an appealing option for families and individuals alike. For investors and developers, these homes represent a long-term opportunity with consistent, growing returns.
With over 25 years of experience, HiLine Homes delivers high-quality, cost-effective rental homes through a proven and efficient process. In partnership with investors, we design properties that meet the needs of modern families while aligning with financial goals for long-term value and steady cash flow. As your trusted partner, we’re here to support you every step of the way, from initial planning and construction to project completion. Contact us for a consultation today to learn how to get started!
