Florida is experiencing a significant boom in build-to-rent (BTR) housing, with thousands of new single-family rental homes under construction. This trend is a direct response to the state’s growing housing demand and the increasing preference for renting over buying, driven by high home prices and mortgage rates.
Florida’s Build-to-Rent Surge
Florida ranks third nationally in the development of build-to-rent homes, with over 13,591 units in various stages of construction. This represents an 83.1% increase in the state’s BTR inventory. The surge is fueled by the desire for more spacious living and amenities, particularly in suburban areas, as the pandemic shifted rental preferences away from smaller urban apartments.
- Florida is projected to add over 13,591 new single-family rental homes.
- The state ranks third nationally for build-to-rent housing development.
- This trend is a response to high home prices and mortgage rates, making renting more attractive.
Key Markets and Growth Areas
Several Florida metropolitan areas are leading this development. The Orlando-Kissimmee-Sanford area is at the forefront, with over 3,000 units underway. Tampa and Jacksonville are also seeing substantial growth, each with nearly 2,000 new units planned. Other cities like Wesley Chapel, Kissimmee, Port St. Lucie, St. Augustine, and St. Cloud are also contributing significantly to the BTR expansion.
National Context and Future Outlook
Nationwide, over 110,000 single-family rental homes are under construction. Texas and Arizona lead the nation in BTR development, with Florida following closely. While the BTR sector has seen rapid growth, some analysts predict a potential slowdown in construction due to rising costs for land, labor, and materials, as well as increased construction debt. Despite these challenges, the demand for spacious, amenity-rich rental homes is expected to remain strong.
Factors Driving the Trend
The build-to-rent market offers a compelling alternative for individuals and families who desire the space and amenities of a single-family home without the commitment and financial burden of homeownership. The flexibility of renting, coupled with professional management and community features, appeals to a growing segment of the population. This trend is reshaping the housing landscape, providing more options for renters across the state.
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.
- Build-to-rent boom: 110,000+ single-family rentals under construction across U.S., with Texas, Arizona, and
Florida in the lead, Wichita Eagle. - Florida Among Build-to-Rent Leaders | Florida Realtors, | Florida Realtors.