There are nearly 22,000 build-to-rent (BTR) units in Texas’ construction pipeline — that’s the highest number in any state in the country, according to Point2Homes.

A majority of those BTR units are in Dallas, which has 8,470 single-family rental (SFR) units in the works — the second-highest quantity of any metro area in the country, behind only Phoenix. Meanwhile, Houston ranks No. 5 in the country, with 4,613 SFR units coming down the pike. Austin ranks No. 6 with 4,313 units, and San Antonio ranks No. 8, with 2,994 units.

When completed, those units will represent a 70% increase in the Texas’ overall rental inventory.

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%.