What’s the 2025 Outlook for BTR Communities

And what is driving the demand for BTR?

As the U.S. housing market remains undersupplied and unaffordable for many, Build-to-Rent (BTR) communities are quickly providing a solution to the housing crisis. 

In our recent webinar with Trilogy featuring Jeff Feinstein, Managing Partner of Pinnacle Partners, David Beare, Executive Vice President, Investments and Austin Lee, Vice President, Investments of Trilogy, we discussed why BTR is gaining record-setting institutional interest, all while offering longer-term stability and higher retention than traditional apartments.

Watch the highlights below on what’s in store for the BTR sector in 2025

Did you know? 97% of Single-Family Rental stock is still in the hands of small, mom-and-pop landlords, and most of these homes lack institutional-grade property management, amenities, or upkeep. BTR offers a cleaner, newer, and better-managed alternative—often built for less than the cost of buying a resale home.  

Rising interest rates have stalled construction across both for-sale and for-rent housing. As permitting drops, the previous flood of new supply is now being absorbed—creating projected rent growth over the next several years. In fact, according to experts like John Burns Real Estate Consulting, we’re heading into a window where new supply is slowing down while rent growth is accelerating. Therefore, markets with job growth, particularly in the Sub Belt revision, remain attractive. 

BTR communities are becoming increasingly popular due to their high occupancy across markets and for generating predictable cash flows as tenants tend to stick around longer than apartments. Find out what’s driving the demand for BTR communities below. 

Have questions? Get in touch with us below! You can also learn more about our BTR OZ Fund here.

Past performance of Pinnacle Partners OZ Funds is not indicative of future results. There can be no assurance that the fund’s objectives will be achieved or that cash distributions will, in fact, be made or, if made, whether those distributions will be made when or in the amount anticipated or that certain tax benefits will be available to investors. An investment in the fund is illiquid, speculative, and will involve significant risks. It is only offered to suitable and qualified investors. Full details about the fund and its associated risks can be found in the fund offering documents. 

Nothing in this blog post should be construed as tax advice.  Please confer with your tax adviser to determine if an investment in an OZ fund is right for you.