Florida’s build-to-rent (BTR) sector is experiencing unprecedented growth, with thousands of new single-family rental homes under construction across the state. This trend is driven by rising home prices, high interest rates, and a demand for more spacious rental options, making Florida a national leader in this burgeoning market.
Key Takeaways
- Florida ranks among the top states for build-to-rent construction, with a significant increase in new units.
- The state is projected to add over 13,000 new rental homes in the coming year.
- Central Florida, particularly the Orlando-Kissimmee-Sanford metro area, is a major hub for this development.
- Factors like remote work and the desire for homeownership without the commitment are fueling demand.
A Booming Sector
The build-to-rent market in Florida has seen a dramatic increase, with one report indicating a 304.7% rise in completed units over the past five years. In the most recent year analyzed, Florida finished 5,379 new single-family rentals and had an additional 7,792 in development. This places Florida second only to Texas in the nation for completed BTR units in the past year.
Florida’s Leading Role
Florida is poised to add more than 13,591 new single-family rental homes this year, marking an 83.1% boost to its BTR inventory. This significant expansion positions Florida as a leader in the Southeast and third nationally, following Texas and Arizona. The state is one of only four nationwide with over 10,000 single-family homes for rent in various stages of development.
Central Florida at the Forefront
The Orlando-Kissimmee-Sanford metropolitan area is a focal point of this construction boom, with over 3,000 units underway. Other key areas contributing to this growth include Tampa, which is adding nearly 2,000 units, and Jacksonville, with approximately 1,703 planned units. North Port is also a significant contributor, aiming to build 1,369 single-family rentals.
Driving Factors Behind the Growth
The surge in build-to-rent communities is attributed to several factors. High housing costs and interest rates are making homeownership less accessible for many Floridians, pushing them towards the rental market. Additionally, lifestyle changes accelerated by the pandemic, such as the rise of remote work, have increased demand for larger homes with more amenities, which BTR communities often provide. These developments offer renters the benefits of a standalone home, including privacy and space, without the responsibilities of ownership.
### Sources
- Report: Build-to-rent homes in Florida up more than 300%, Business Observer.
- Florida to add more than 13,000 rental homes this year, Florida Politics.
- Report: Florida ranks No. 3 in nation for build-to-rent housing market, Business Observer.
- Florida Among Build-to-Rent Leaders | Florida Realtors, | Florida Realtors.