A new rental report has revealed Texas is leading the nation with the highest single-family home rental construction growth, and San Antonio is among the top 10 U.S. metros building the most new homes for rent.

The analysis from rental listings website Point2Homes examined construction rates and build permit data for "single-family homes for rent that are located in build-to-rent, professionally managed communities" across America. For the purpose of the study, build-to-rent communities are defined as those where a majority of homes eitherdon't share any walls with each other, or so have some shared walls but do not have neighbors above or below, or have a direct-access garage.

According to the report's findings, San Antonio's rental home construction rate is the 8th highest in the nation, and the metro area currently has 2,994 build-to-rent single-family homes in the works for 2025.

The greatest share of rental homes – 2,009 units – are being built within the city limits, while Schertz is building the second-highest share in the region, totaling 318 homes.

This is how many build-to-rent homes are being built across other San Antonio-area cities:

• 256 units – New Braunfels
• 217 units – Canyon Lake
• 194 units – Saint Hedwig

The report claims Texas' healthy job market, remote work flexibility, and business-friendliness are the top reasons why the build-to-rent growth has soared so high.

Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix (Point2Homes' sister company), says affordability is another major factor.

"The biggest hurdle to buying a home for [build-to-rent] BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market," Ressler says. "On average, renting a BTR unit is cheaper than buying a starter home. 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."

Ressler adds that the target markets – Millennials and Gen Z – are increasingly interested in new single-family home rentals to avoid the hurdle of paying high property taxes while still managing other debts like student loans. This also allows them to remain close to the city in a nearby suburb, rather than in rural areas.

"As urban areas become more congested and expensive, there’s a growing trend towards suburban living," Ressler said. "BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers."

Other Texas metros with skyrocketing single-family rental growth
Texas cities dominated the top 10 U.S. metros with the greatest build-to-rent growth rates. Dallas ranked No. 2 nationally with 8,470 new homes being built for rent in the metro.

Meanwhile, Houston and Austin ranked No. 5 and No. 6 nationwide respectively. Houston currently has 4,613 new single-family rental homes in the pipeline in 2025, while Austin is expected to build 4,313 units.

Phoenix, Arizona, topped the nation with the No. 1 highest new rental home construction rate. The Valley of the Sun is expected to complete 13,113 build-to-rent homes in 2025.

The top 10 U.S. metros building the most new rental homes in 2025 are:

• No. 1 – Phoenix, Arizona
• No. 2 – Dallas, Texas
• No. 3 – Atlanta, Georgia
• No. 4 – Charlotte, North Carolina
• No. 5 – Houston, Texas
• No. 6 – Austin, Texas
• No. 7 – Orlando, Florida
• No. 8 – San Antonio, Texas
• No. 9 – Raleigh, North Carolina
• No. 10 – Huntsville, Alabama