How Build-To-Rent Communities Are Impacting Property Management

The rise of build-to-rent means more opportunities for property managers to grow their businesses.

Build-to-rent (BTR) communities are growing significantly in 2024, thanks to changing housing preferences and economic factors. Property management (PM) companies stand to benefit.

RentScale’s expert coaches held a discussion about how the industry is leveraging BTR and relationships to build their PM businesses.

Here’s what we learned.

Why Is BTR So Hot Right Now?

The number of BTR units increased by 15% between 2023 and 2024. Data also shows that more investors are choosing the BTR route, with a 25% increase in BTR funding from institutional investors in 2024 alone.

A key driver of this uptick in BTR preference is the establishment of stable rental income. Real estate is already a pretty reliable investment, and BTR stands to stretch that reliability even further.

Additionally, major U.S. cities with high occupancy rates, like New York City, Chicago, and Los Angeles, have seen a 20% increase in BTR construction projects.

The influx of fresh capital into BTR projects is a testament to the stability and profitability that BTR communities bring. Whether financing, developing, building, or managing, BTR is a win for all.