How to Tap Into the Growing Build-to-Rent Market

Yardi Matrix’s recently released National Multifamily Report held a few surprises for those doing business in this relatively strong – when compared to single-family homebuilding – sector. The company specializes in providing market intelligence for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in multifamily and student housing, as well as non-residential property types.

One of the primary factors that Yardi Matrix tracks is the rental rates throughout major metros and suburban areas of the country. Here, too, much like with single-family homebuilding, high interest rates have reduced the number of transactions that closed this year. In fact, the report stated that multifamily sales are up only 1% year-over-year through July 2025. Furthermore, the report showed that there are regional differences in rent growth, with the Midwest and coastal metros leading with higher rent growth, while Sun Belt areas  (such as Austin and Denver) experiencing declines. Yardi Matrix stated that these variations are influenced by the balance of supply and demand.

Another factor hindering growth is the number of multifamily units – roughly one million – that are still under construction. Only half of those are in the pre-lease phase, according to Yardi Matrix’s research. Interest rates and tariff volatility on materials are partly to blame for the sluggish numbers in construction completions.  

 Overall, demand in the multifamily category is steady since many Americans feel they cannot afford to buy a home currently and are opting to rent in the meantime. When you dig deeper into the type of rentals that are attracting younger generations, you’ll find that it is the Build-to-Rent (BTR) market, which is typically comprised of newly built, single-family homes with upscale amenities and robust communities.

According to the Yardi Matrix’s national report, BTR deliveries hit an all-time high in 2024, growing by 455% since 2019. Research calculated more than 90,000 units that are actively being developed in the nation’s 100 largest metros. And while Sunbelt areas such as Phoenix, Dallas, and Atlanta are in the lead due to population growth, available land, and favorable investment conditions, the BTR market has been slowly expanding into smaller Southeastern, Midwestern, and Mountain West metros (such as Wilmington, Delaware and Des Moines, Iowa).

According to Yardi Matrix’s research, occupancy rates in the BTR sector remain high (around 95%), and single-family rents are up over 3% year-over-year, outpacing multifamily rent growth. The report showed that the most successful projects often included extensive amenities designed to attract renters looking for more than just an apartment or condo.

Lighting showrooms are accustomed to working with single-family home builders, but the BTR market works a little differently and requires a showroom to expand its outreach in order to tap into business opportunities.

Where to start

Instead of the usual go-to of working with national and local home builders, lighting showrooms might find greater success by starting further up the chain — contacting developers and property managers.

Check on the popular real estate listing sites (such as Zillow, Trulia, and Realtor) for the names of property management companies and property developers since these websites will often list new developments and the companies behind them. There are also organizations such as the National Association of Residential Property Managers (NARPM) that can be a source for leads and guidance on how to become involved in this area, as well as local real estate associations and chambers of commerce.

Showrooms that already do a large business in multifamily already know to contact the municipal offices for local building permits to stay on top of projects in the pipeline, but if your showroom is new to the market, it’s another place to start.

Where are the BTR communities?

Believe it or not, there are BTR communities in nearly every state, but they are especially popular in states such as Texas, Arizona, Florida, Georgia, and North Carolina. Statistics show that these states have thousands of units under construction — typically a community has a minimum of 150 units. Phoenix, Dallas, Atlanta, Jacksonville, and Tampa are among the cities that have the most BTR growth. According to Yardi Matrix, secondary and smaller metros like Wilmington, N.C., Des Moines, Chattanooga, and Minneapolis are also seeing rapid growth, often doubling their BTR inventory year-over-year. Research also shows that Massachusetts, California, New Jersey, Southern California, and Boston suburbs are showing increased activity in the BTR market.

Have tools available

Property managers and developers are interested in maximizing value. Create a visual portfolio of your showroom’s past work with an emphasis on highlighting energy savings (i.e. LED fixtures and smart controls) and the positive visual impact that good lighting throughout the property – exterior and interior – can make.   

Create several different lighting packages that address the types of projects that property owners and developers handle and have those options in a presentation-friendly format.

And just as many showrooms host manufacturer product demonstrations and networking gatherings for interior designers, do the same with your area’s property managers and developers. Chances are your competition is not catering to this segment of the market.  

If you don’t have one already, put a plan together for 2026 to address the BTR segment while it is still emerging as a trend.

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