March 19, 2026

Build-to-rent special report: Supply-side pressures to ease in 2026

picture of a build-to-rent neighborhood featuring a blue house

A more favorable environment for BTR properties likely in 2026

The national economy has posted uneven performance in recent periods, creating challenges for businesses and individuals to plan for the year to come.

The build-to-rent (BTR) market is recording many of the same property performance characteristics as the traditional multifamily sector. Renter demand has remained elevated, despite a slower pace of job growth. While there is continued demand for BTR units, a surge in the pace of deliveries created supply-side pressures, resulting in softer operating fundamentals in recent periods.

Some of the support for BTR communities is stemming from the for-sale housing market. While a healthy housing market often indicates and underpins a strong economy, the current conditions of low sales volumes, mortgage rates in the low-6% range, and flat prices, have people seeking alternatives to for-sale housing.

These conditions continue to make moving from renting to owning cost prohibitive, keeping many would-be buyers in the rental market for longer periods. Recent studies show two prominent trends that are supporting longer-term demand for rentals: first, housing mobility is at its lowest rate in generations and second, first-time homebuyers are representing their lowest share of home purchases on record. Since 2023, more than 1.2 million new renter households have been created, a surge in demand that is being absorbed by new apartments and build-to-rent units.