Giants like Blackstone are betting on ‘built-to-rent’ housing as home prices soar. How to get in on the action in 2026

Core Insights - The build-to-rent (BTR) housing market is gaining traction in the United States, with major investors like Blackstone and AvalonBay Communities recognizing its potential as a new investment class [3][5][9] - The share of new single-family homes being built for rental purposes has increased from 5% to 9%, indicating a shift in market dynamics [1][2] - The median price of a single-family home reached $412,500 in 2024, making homeownership increasingly unattainable for many Americans [4][17] Group 1: Market Trends - The number of BTR single-family housing starts rose from 60,000 to 90,000 between 2021 and 2024, reflecting a growing trend among developers to construct homes for leasing rather than selling [2][5] - The affordability crisis in housing is exacerbated by rising prices and elevated mortgage rates, with the average 30-year mortgage rate projected to remain above 6% until the end of 2026 [17][18] Group 2: Investment Opportunities - Retail investors can participate in the BTR market with minimal capital, as platforms like Arrived allow investments starting at $100 [7][8] - Private real estate funds, such as the Fundrise Flagship Fund, provide access to large, professionally managed property portfolios, allowing investors to diversify without needing significant capital [15][16] - Build-to-suit (BTS) projects in the industrial property market are also on the rise, comprising 29% of new industrial space in 2025, up from 22% in 2024, presenting additional investment opportunities [9][10]