New Build-to-Rent Survey: spring brings modest rental growth
John Burns Research & Consulting’s inaugural nationwide survey on build-to-rent (BTR) housing reveals a modest 1.3% year-over-year rent growth in Q1 2025, driven by a 2.5% increase in lease renewals and a 0.9% rise in new leases. Despite this increase, operating expenses outpaced rent growth, rising 3.2% year-over-year and reducing net operating income. Looking ahead, industry experts anticipate a 2% annual rent growth in 2025, though challenges such as elevated interest rates, tariffs, and labor shortages may impact profitability.
According to John Burns Research and Consulting, “The Midwest outperformed other regions in 1Q25, with blended rents rising by +4.2% YOY, thanks to still historically low for-rent and for-sale supply. The Southwest saw the biggest decline, with rents dropping -2.9% YOY, as the market faces a wave of new apartment and BTR units.”
