There are over 13,000 build-to-rent (BTR) units in Phoenix’s construction pipeline — that’s the highest number in any metro area in the country, according to Point2Homes.

Although Texas has the most BTR units in its pipeline on a statewide level, with 21,812 single-family rental (SFR) units in the works, Arizona ranks second, with 13,972 SFR units coming down the pike. All but about 800 of those units are concentrated in the Phoenix metro area, with the rest mostly in Tucson and Flagstaff. When completed, those units will increase Arizona’s BTR inventory by 76.3%.

That boost of inventory will support a population that’s largely favoring renting, said Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix, who pointed out that 36% of BTR residents considered themselves renters by preference in 2024, up from 27% in 2023.

“On average, renting a BTR unit is cheaper than buying a starter home,” Ressler said in the report. “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.

“Millennials and Gen Z are increasingly favoring rental options over homeownership due to high property prices and student debt,” he continued. “BTR communities cater to their preferences for mobility, flexibility and modern amenities.”

Nationwide, there are 110,727 BTR units under construction. When completed, that quantity will expand the country’s BTR inventory by 53.5%.