Why Smart Investors Are Pouring Money Into Build-to-Rent Rental Housing Homes in 2025 USA + Canada

Built-To-Rent Rental Housing in USA + Canada

The build-to-rent (BTR) sector is booming and 2025 is already a record-breaking year.

According to a recent analysis of data released this week, nearly 40,000 single-family rental homes were completed across the U.S. in 2024. That’s a 15.5% increase from the previous year and a clear sign that investor appetite for rental housing isn’t going anywhere.

Once considered a niche segment of the residential market, build-to-rent properties have emerged as a key strategy for developers and institutional investors looking to capitalize on changing housing preferences. With rising homeownership costs, higher interest rates, and ongoing housing shortages in many metro areas, demand for professionally managed, single-family rental homes is surging.

The appeal? These communities offer the space and privacy of a traditional home with the maintenance-free lifestyle and amenities typically found in multifamily developments. Think: yards, garages, pet-friendly policies, and access to pools, fitness centers, or walking trails all managed by a single property operator.

While the Sun Belt has long been a hotbed for BTR development, markets across the country are catching on as renters continue to seek more space without the long-term commitment or financial burden of buying a home.

And with 2024 already setting a new high-water mark, analysts say the trend shows no signs of cooling. If anything, expect to see more capital, more communities, and more innovation flood into the BTR space in the months ahead.

For real estate investors and developers, the message is clear: Build-to-rent is not just a trend, it’s a fundamental shift in how Americans live and invest in housing.

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Cost to Build a Build-to-Rent (BTR) Rental Housing

The cost of building a Build-to-Rent (BTR) house in the U.S. varies depending on several factors, but here are the general ballpark figures as of 2024:

Typical Cost Range (Per Unit):

• Low-end (Basic suburban units): $150,000 – $250,000

• Mid-range (Modern, well-located homes): $250,000 – $400,000

• High-end (Premium finishes, urban infill): $400,000+

Breakdown of Costs:

Category	Cost Estimate (per unit)
Land acquisition	$30,000 – $100,000
Site development	$20,000 – $50,000
Construction	$120 – $250 per sq. ft.
Soft costs (permits, design, fees)	10% – 20% of total cost
Financing + Contingency	5% – 10%

So for a 1,800 sq. ft. home, you're looking at $216,000 – $450,000+ depending on finishes, labor, and location.

What Is the Sun Belt?

The Sun Belt is a region in the United States that stretches across the South and Southwest, known for its warm climate, economic growth, and population booms—making it very popular for BTR investments.

States Typically Included:

• Southwest: Arizona, New Mexico, Nevada

• South: Texas, Oklahoma

• Southeast: Florida, Georgia, North Carolina, South Carolina, Alabama, Mississippi

• Others: Parts of California, Louisiana, Tennessee

Why it Matters for BTR:

• High population growth

• Affordable land

• Strong rental demand

• Business and tax-friendly policies

• Growing migration from northern states

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Best Cities for Build-To-Rent in Canada (2025 Outlook)

1. Calgary, Alberta

• Why: Fastest growing major city in Canada; relatively affordable land; low vacancy rates (~2.4%); population growth.

• Pros: Pro-landlord regulations, strong job growth, rising rental demand.

• Bonus: No provincial sales tax (vs. 13% in Ontario!).

2. Edmonton, Alberta

• Why: Similar to Calgary but slightly more affordable. Good for long-term investors.

• Vacancy rates have dropped, and net migration is up.

3. Ottawa, Ontario

• Why: Stable government jobs, steady rental market, good ROI potential.

• Vacancy Rate (2024): Around 2.1% and falling.

• Challenges: Construction and land can be more expensive than in Alberta.

4. Halifax, Nova Scotia

• Why: Booming population growth, especially from immigration and interprovincial migration.

• Rental Demand: Strong due to limited new housing stock.

• Challenge: Smaller market than others, but growing.

5. London & Kitchener-Waterloo, Ontario

• Why: Proximity to Toronto, but more affordable. Strong student + tech worker population.

• Rental Returns: Often higher than in GTA due to lower purchase prices.

Places to Approach Cautiously (for now)

• Downtown Toronto & Vancouver: Very expensive land, rent control challenges, lower ROI unless you're doing luxury BTR.

• Montreal: Attractive rents, but strict rent control laws and tenant-friendly regulations can deter investors.

Bonus Tip:

Look at areas near new transit infrastructure or job hubs (e.g., near GO Train stations in Ontario or LRT expansions in Alberta).