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Developers are pumping out single-family rentals like Oprah on a giveaway spree. The build-to-rent (BTR) boom is reshaping the housing map, with Phoenix and Dallas leading the charge. Meanwhile, Minnesota’s insurance premiums are climbing, and the Fed delivers mixed messages faster than an ex.

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BTR BOOM (NOT A BOY BAND)

Story: The build-to-rent (BTR) sector just broke another record in 2024, completing 39,000 new single-family rentals, up 15.5% from 2023. That’s not a typo—that’s a tsunami of new rental homes, and it’s part of a larger shift that’s been brewing since the pandemic turned kitchens into Zoom rooms. The South remains king, with Phoenix, Dallas, and Atlanta topping the charts. Texas alone delivered nearly 7,000 homes, and there are over 109,000 units still in the pipeline. Add population growth in places like Florida (+2.0%) and North Carolina (+1.5%), and you have a recipe for ongoing BTR dominance.

So What? This is a big flashing “OPPORTUNITY” sign. The demand for larger rentals with amenities and space is off the charts—and investors who adapt to this shift could lock in higher rents and longer-term tenants. Plus, let’s be honest: BTR tenants tend to treat homes like their own, meaning fewer late-night calls about “weird smells in the fridge.” Builders are adjusting to meet the needs of renters who want the privacy of a house without the commitment of a mortgage.

What’s Next? Keep your binoculars on metros like Phoenix, Dallas, and Charlotte, which have thousands of units still under construction. Watch for continued migration trends, interest rate shifts, and zoning policy changes that could accelerate or stall growth. If costs or permitting slow down, supply may tighten, but for now, the BTR train is full steam ahead. Expect another strong year, especially in states with job growth, no income tax, and wide-open land that screams, “Please build here.”

Source: Point2Homes

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Top Weekly Stories:

1️⃣ SFR/Multifamily Management: Rents ticked up 0.6% month-over-month, ending the winter slump, but year-over-year growth is still slightly negative. The national vacancy rate hit a record 6.9%, thanks to a tsunami of new supply. 🪺 More

2️⃣ Insurance: Minnesota’s home insurance premiums are set to spike 15% in 2025, thanks to a surge in billion-dollar weather disasters (read: hailstones the size of toddler shoes). 🪺 More

3️⃣ Mortgages: Could China crash the U.S. mortgage market? Maybe—if it dumps $760B in Treasuries. 🪺 More

4️⃣ Interesting Trends: Remote work isn’t just sticking around—it’s nesting. Office occupancy is frozen at 55%, and your sweatpants might still be tax-deductible. 🪺 More

5️⃣ Policy Changes: Fed Chair Powell made a sneaky hawkish pivot—aka, rate hikes aren’t back on the table, but they’re definitely considering it. 🪺 More

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