renting in the big city
Houston is building more homes for rent than nearly any other U.S. city
Houston is building more single-family rental homes than many other U.S. cities.
A new rental report has revealed Texas is leading the nation with the highest single-family home rental construction growth, and Houston is among the top five U.S. metros building the most new homes for rent.
The analysis from rental listings website Point2Homes examined construction rates and building permit data for single-family homes that are "located in build-to-rent, professionally managed communities" across America. For the purpose of the study, build-to-rent homes are defined as units that don't share any walls with other homes, and includes those that have shared walls but do not have neighbors above or below or have a direct-access garage.
According to the report's findings, Houston's rental home construction rate is the 5th highest in the nation, and the metro area is expected to build 4,613 new single-family homes for rent in 2025.
The greatest share of rental homes – 1,007 units – are being built in Cypress, while Houston proper is only expecting to build 326 rental homes.
This is how many build-to-rent homes are being built across other Houston-area cities:
- 922 units – Rosharon
- 466 units – Hockley
- 342 units – Montgomery
- 320 units – Fresno
- 266 units – Katy
- 192 units – Pearland
- 164 units – Baytown
- 162 units – Atascocita
- 151 units – Texas City
- 148 units – Tomball
- 147 units – Fulshear
Houston's rental home construction helps make up the total 21,812 units that are planned or currently being built in Texas this year.
The report claims Texas' healthy job market, remote work flexibility, and its business-friendliness are the top reasons why the build-to-rent growth has soared so high.
Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix (Point2Homes' sister company), says affordability is another major factor.
"The biggest hurdle to buying a home for [build-to-rent] BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market," Ressler says. "On average, renting a BTR unit is cheaper than buying a starter home. Recent reports indicate that renting can save one around $1,000 per month compared to buying. This is largely due to high mortgage rates and elevated home prices."
Ressler adds that the target markets – Millennials and Gen Z – are increasingly interested in new single-family home rentals to avoid the hurdle of paying high property taxes while still managing other debts like student loans. This also allows them to remain close to the city in a nearby suburb, rather than in rural areas.
"As urban areas become more congested and expensive, there’s a growing trend towards suburban living," Ressler said. "BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers."
Other Texas metros with skyrocketing single-family rental growth
Texas cities dominated the top 10 U.S. metros with the greatest build-to-rent growth rates. Dallas ranked No. 2 nationally with 8,470 new homes being built for rent in the metro.
Meanwhile, Austin and San Antonio ranked No. 6 and No. 8 respectively. Austin currently has 4,313 new single-family rental homes in the pipeline in 2025, while San Antonio is expected to build 2,994 units.
Phoenix, Arizona topped the nation with the No. 1 highest new rental home construction rate. The Valley of the Sun is expected to complete 13,113 build-to-rent homes in 2025.
The top 10 U.S. metros building the most new rental homes in 2025 are:
- No. 1 – Phoenix, Arizona
- No. 2 – Dallas, Texas
- No. 3 – Atlanta, Georgia
- No. 4 – Charlotte, North Carolina
- No. 5 – Houston, Texas
- No. 6 – Austin, Texas
- No. 7 – Orlando, Florida
- No. 8 – San Antonio, Texas
- No. 9 – Raleigh, North Carolina
- No. 10 – Huntsville, Alabama
