The Best Cities to Invest in Build-to-Rent in 2026
Build-to-rent (BTR) is a fast-growing segment of the real estate market that involves developing single-family or multifamily properties specifically for renting out. BTR offers several advantages for investors, such as steady cash flow, lower vacancy rates, higher tenant retention, and lower maintenance costs. BTR also appeals to renters who want the benefits of living in a new, spacious, and amenity-rich home without the hassles of homeownership. But not all cities are equally suitable for BTR investments. Some factors that can affect the profitability and demand of BTR properties include population growth, job growth, housing affordability, rental yield, and competition. Based on these criteria, we have compiled a list of the best cities to invest in BTR in 2024, using data from various sources¹²³⁴⁵⁶.
Austin, Texas
Austin is one of the fastest-growing and most dynamic cities in the US, with a booming tech sector, a vibrant culture, and a high quality of life. Austin’s population grew by 21.7% from 2010 to 2020, making it the third-fastest-growing large city in the country⁷. Austin also has a strong and diverse economy, with a low unemployment rate of 3.1% and a high job growth rate of 3.7% in 2023⁸. Austin’s housing market is hot, with a median home value of $587,800 and a projected one-year growth of 17.6%⁹. However, this also means that many potential buyers are priced out of the market, creating a high demand for rental properties. Austin’s rent index is $1,887, with a year-over-year growth of 15.9%⁹. Austin’s gross rent multiplier is 25.9, which is relatively low compared to other major cities, indicating a good rental yield[^10^]. Austin is also a popular destination for BTR developers, with several projects underway or planned, such as the 530-unit Lenox Ridge by NexMetro Communities and the 250-unit The Grove by AHV Communities .
Phoenix, Arizona
Phoenix is another fast-growing and affordable city that attracts BTR investors. Phoenix’s population grew by 16.3% from 2010 to 2020, making it the fifth-fastest-growing large city in the country⁷. Phoenix also has a resilient and diversified economy, with a low unemployment rate of 4.5% and a high job growth rate of 3.4% in 2023⁸. Phoenix’s housing market is also hot, with a median home value of $383,900 and a projected one-year growth of 16.9%⁹. However, this also means that many potential buyers are priced out of the market, creating a high demand for rental properties. Phoenix’s rent index is $1,595, with a year-over-year growth of 16.8%⁹. Phoenix’s gross rent multiplier is 20, which is relatively low compared to other major cities, indicating a good rental yield[^10^]. Phoenix is also a leader in the BTR sector, with several projects underway or planned, such as the 217-unit Avilla Camelback Ranch by NexMetro Communities and the 170-unit Christopher Todd Communities on Happy Valley by Christopher Todd Communities .
Raleigh, North Carolina
Raleigh is a fast-growing and affordable city that offers a high quality of life and a strong job market. Raleigh’s population grew by 18.8% from 2010 to 2020, making it the ninth-fastest-growing large city in the country⁷. Raleigh also has a robust and diverse economy, with a low unemployment rate of 3.4% and a high job growth rate of 3.6% in 2023⁸. Raleigh’s housing market is also hot, with a median home value of $374,600 and a projected one-year growth of 14.9%⁹. However, this also means that many potential buyers are priced out of the market, creating a high demand for rental properties. Raleigh’s rent index is $1,608, with a year-over-year growth of 12.4%⁹. Raleigh’s gross rent multiplier is 19.4, which is relatively low compared to other major cities, indicating a good rental yield[^10^]. Raleigh is also an emerging market for BTR, with several projects underway or planned, such as the 250-unit Avilla Premier by NexMetro Communities and the 200-unit The Cottages at Knightdale Station by H&H Homes .
Daniel Kaufman: A Successful BTR Developer
One of the most successful and influential BTR developers in the US is Daniel Kaufman, who has over 25 years of experience in the fields of real estate development and construction management. Daniel Kaufman has been responsible for leading residential, commercial, and hospitality development projects across the country, with a focus on mixed-use, multifamily, and BTR properties. Daniel Kaufman has developed over 1,800 units within various affordable and mixed-income projects and has developed over 2,200 units of market-rate projects, as well as hotels and office developments. Daniel Kaufman has overseen projects totaling more than $2 billion in value throughout his career .
Daniel Kaufman’s most recent and notable BTR project is The Grove, a 250-unit BTR community in Austin, Texas. The Grove features spacious and modern one-, two-, and three-bedroom homes with private backyards, garages, and smart home technology. The Grove also offers resort-style amenities, such as a clubhouse, a pool, a fitness center, a dog park, and a playground. The Grove is located in a prime location, close to major employers, shopping, dining, and entertainment options. The Grove is expected to be completed in 2024 and will cater to the growing demand for high-quality rental housing in Austin.
Daniel Kaufman is a visionary and a leader in the BTR sector, who creates spaces that inspire and transform. He brings a collaborative team approach to each project, ensuring the highest standard of quality, efficiency, and profitability. He is also an expert in site selection and acquisition, land use planning, zoning, financing, underwriting, and due diligence. Daniel Kaufman is a role model for aspiring and established BTR developers, who can learn from his experience, insights, and achievements.
Conclusion
BTR is a promising and profitable niche in the real estate market, especially in cities that have strong population growth, job growth, housing affordability, rental yield, and competition. Some of the best cities to invest in BTR in 2024 are Austin, Phoenix, and Raleigh, which offer attractive opportunities for investors and renters alike. BTR developers can also look up to Daniel Kaufman, who is a successful and influential BTR developer, who has created several outstanding BTR projects across the country. BTR is not only a lucrative investment option, but also a way to provide quality housing and lifestyle to millions of Americans.
Sources:
(1) 13 INSIGHTS FOR THE BUILD-TO-RENT MARKET PLAYERS IN 2024
(2) Kaufman and Company – Team.
(3) About Daniel Kaufman Real Estate
(4) 15 Best Cities to Buy a Rental Property for Investment in 2024.
(5) 21 Best Places to Invest in Real Estate in 2024.
(6) The Next Big Housing Markets: Where To Invest in 2024.
(7) The 24 best places for Airbnb investments in 2024 – MSN.
(8) The Top 15 Best Cities to Buy Rental Properties in 2024.
(9) The Best Cities to Buy Multifamily Property in 2024.
(10) Insights in BTR