Texas Leads The Nation In BTR Developments. What’s On The Horizon?

With home prices continuing to soar — up 54% nationally since 2019 —  and interest rates remaining high, Americans are searching for a balanced solution between the staggering costs of home ownership and the limited space and privacy of multifamily housing. 

Many have found the answer in built-to-rent communities: single-family housing developments designed specifically for renters. While build-to-rent, or BTR, properties are on the rise in several states across the country, Texas, in particular, has embraced this asset class. Texas was the leading state for BTR development in 2023, with nearly 4,800 single-family rental homes completed. While Dallas and Houston led the charge, the city of Austin was not far behind, adding 840 new single-family rentals, or SFR, units in 2023. 

“It comes down to explosive growth we're seeing across the region, driven by the surge of business expansion within the Austin marketplace,” said Bernida Chapman, vice president of Catamount Constructors’ BTR market. “As new businesses enter and create more jobs, the resulting influx of people fuels a rising demand for housing.” 

Catamount Constructors is a 100% employee-owned general contracting and construction management company, with offices in Texas, Florida, Colorado and Georgia. With active BTR projects across the country, including two under construction in the larger Austin area, Catamount is at the forefront of this booming market type. Chapman spoke with Bisnow about the future of this asset class and Catamount’s unique value proposition for their clients.

Bisnow: Austin delivered a record number of BTR units in 2023. What about the Austin area is attracting BTR/SFR developers? 

Chapman: The high cost of housing in Austin is a major factor pushing developers to build more affordable options where they are most needed. This trend is also driving growth beyond the urban core. We’re increasingly seeing BTR and SFR developments on the city’s periphery, where larger land parcels make these communities feasible. Typically, BTR projects are successful when they achieve about 10 units per acre, so land availability becomes a critical element in the planning process. 

Bisnow: What design and construction trends have you noticed in Austin’s SFR/BTR markets this year? 

Chapman: We are seeing a significant rise in the integration of Smart Home features. Previously, owners might have added this technology after construction, but now it’s becoming a standard part of project specifications. This shift adds to the efficiency of these communities, but also aligns with the growing demand for modern and tech-savvy living spaces. 

Other notable design trends include the inclusion of dog doors, electric vehicle chargers and private fenced-in yards. People love having a small patio area for outdoor furniture and a turf area for their pets.

Additionally, developers are getting creative with amenity spaces. Given the size of many of these BTR developments, significant stormwater detention is often required. As a result, we’re seeing the creation of “pocket parks” — small grassy areas or dog parks that serve dual purposes as both functional stormwater management and attractive community amenities.

Bisnow: Does Catamount have any SFR/BTR projects it's working on or has recently completed in the Austin area? 

Chapman: We are under construction on two exciting communities with NexMetro Communities in Liberty Hill, Texas, a rapidly growing suburb north of Austin. Avilla Vista Ranch, a 150-unit community, is on track for completion in the second quarter of 2025, while Avilla Rio Oaks, a 260-unit development, is set to be finished by the fourth quarter of 2025.

Beyond these projects, we are actively engaging with several other clients who are interested in developing within the greater Austin area because of the explosive growth this region is seeing. 

Bisnow: How does Catamount help its clients in the BTR/SFR space in Austin? 

Chapman: Building relationships with key project partners — including our subcontractors and trades — is crucial to our project success. Even before breaking ground on Avilla Vista Ranch and Avilla Rio Oaks, we spent nearly two years immersing ourselves in the Austin market, meeting with key players and understanding the local landscape. This proactive approach has been crucial in assembling a team committed to executing our projects with the highest standards of quality and precision.

In addition to fostering key relationships, we also prioritize an enhanced preconstruction experience. We engage deeply with local jurisdictions and guide our clients through every aspect of this phase, typically dedicating nine to 12 months supporting our clients in preconstruction. Our extensive experience in the BTR sector allows us to offer valuable insights and strategic advice.

For instance, we can recommend the most effective approaches for specific circumstances, optimal densities for different locations, and opportunities for value engineering. We also help clarify the design intent to ensure the final product aligns with our client’s vision. 

Our leadership team, including Jared Ford, president of BTR, and myself, bring significant experience from the developer side as well. This dual perspective enriches the level of service we provide and broadens the industry knowledge we are able to share with our clients. 

Our commitment to going above and beyond — ensuring our clients’ success even before breaking ground — is what truly sets us apart in the industry. If there’s a way to facilitate a deal, you can count on us to be there, offering our full support and expertise.

Bisnow: What’s unique about Catamount’s approach to BTR/SFR projects compared to other construction companies in the market?

Chapman: With our BTR leadership team adding the developer expertise to Catamount’s existing construction expertise, we understand and can address the needs of all project stakeholders. This unique approach allows us to be more dynamic and responsive in our decision-making, ensuring that we align with our clients’ goals.

Because of our extensive experience and unique value proposition across BTR, many developers come to us saying, “We have the land and the backing, but we don’t know how to successfully navigate the BTR space successfully.” To address this recurring need, we are investing in the research and development of our own BTR prototype. This prototype includes highly efficient, pre-designed units that streamline the entire process from concept to construction.

Our “off the shelf” prototype is designed to simplify and accelerate the project lifecycle. We have pre-designed and engineered solutions to address common concerns, identify efficiency opportunities and optimize the development process. Clients only need to select their preferred finishes, and we handle the rest. This includes getting building permits submitted within six to eight weeks after selections are made.

This prototype program is a comprehensive design-build solution that combines proven, efficient and visually appealing pre-designed units. It drives speed to market, reduces cost and risk for our clients and leverages key insights from our extensive BTR experience. This approach enables us to swiftly transition from concept to completion, consistently delivering high-quality BTR communities with precision and speed.

Bisnow: What are your predictions for Austin’s SFR/BTR markets for the rest of this year and as we head into next year? 

Chapman: While there’s been some talk of oversupply in the Austin rental market, this reflects the city’s rapid growth and popularity. With nearly 20% of the rental market coming online this year, we might see a temporary challenge in lease-up periods and some short-term strain on project underwriting. However, this is a testament to the greater Austin market’s vibrant and expanding housing sector.

Despite these temporary challenges, the long-term outlook for Austin remains incredibly strong. Developers are actively exploring opportunities in surrounding areas like New Braunfels, Boerne and Liberty Hill, recognizing the potential these locations hold even in today’s capital environment.

The current influx of supply will eventually be absorbed, paving the way for sustained growth and opportunity. As Austin continues to thrive, the BTR market will adapt and evolve, meeting the housing needs of its growing population.

This article was produced in collaboration between Catamount Constructors and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.