AriZona Real Estate insider!

America’s renters are thinking bigger—and smarter.

According to a new report from Point2Homes, the demand for single-family rentals (SFRs) is skyrocketing, while apartment living is falling out of favor. And here’s the kicker: Phoenix is leading the charge.

As space, flexibility, and lifestyle perks become top priorities, renters are ditching high-rise living for homes with yards, driveways, and maybe even a dog or two. For investors, this shift isn’t just a trend—it’s an opportunity to lock in long-term, cash-flowing assets in one of the hottest markets in the country.

Here’s what the data—and the market—are telling us.

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🚗 6 in 10 New House Renters Are Coming from Apartments

That’s double what it was just two years ago. People are done with cramped apartment living. They want driveways, privacy, home offices, and room for a dog or two.

That means strong tenant demand for SFRs—and a chance for investors to deliver exactly what the market is asking for.

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🛏️ 3-Bedroom Rentals Are the Sweet Spot

More than 53% of all new build-to-rent completions in 2025 are three-bedroom homes.

Why? That extra room is flexible gold—it can be a nursery, office, workout space, or guest room. It’s what modern renters want, and they’re willing to pay for it.

As an investor, this is your target product. Focus on 3-bed homes. They’re cash-flow friendly and lifestyle-proof.

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💰 Phoenix Renters Save $1,114/Month vs Homeowners

In Phoenix, renting a single-family home costs $1,114/month less than owning. That’s not a typo. And in this interest-rate environment, that kind of savings is a major motivator for long-term renters.

High mortgage rates = more renters.
More renters = more stable income for you.

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🏗️ Phoenix Leads the Nation in Build-to-Rent Construction

Phoenix isn’t just participating in the BTR boom—we’re leading it.

With 13,000+ build-to-rent homes under construction, we’re outpacing every other metro in the U.S. That means Phoenix is positioned to meet the growing demand head-on—and investors can get in on the action early.

Despite the influx, occupancy dipped just -0.7% last year. That’s barely a wobble.

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🐾 Pet-Friendly Homes = Profitable Homes

New data shows pet accommodations are now more important to renters than even family space. That’s a shift.

Fenced yards, pet-friendly flooring, and dog-walking trails are becoming standard SFR features. If your rental caters to pet owners, you’re ahead of the game.

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🔁 Not Just Millennials—Even Former Homeowners Are Renting

Here’s a stat that surprises most people: Almost 1 in 10 new SFR renters used to own a home.

They’re not renting because they have to—they’re renting because they want the freedom of home living without the mortgage, maintenance, or commitment.

These aren’t just tenants. They’re lifestyle clients—and they’re reliable.

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⏳ Tenants Are Staying Longer

According to national trends, nearly 1 in 5 renters now stays in their home over 10 years. That’s 18.7%—up from 16.1% in 2017.

Longer leases. Less turnover. Higher ROI.
This isn’t the transient renter market of the past—it’s a long-term opportunity for steady returns.

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🔑 The Investor Opportunity

Here’s your takeaway:

• Phoenix is the #1 market for new single-family rental construction
• Renters are shifting from apartments to homes—fast
• They want space, privacy, pet-friendly features, and flexibility
• The math works in their favor (lower cost than buying)
• And it works in your favor (rising demand, longer tenancies, and strong returns)

This isn’t a short-term trend. It’s a structural shift in the rental market.

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We’ve talked about the build-to-rent explosion before—and this new data from Point2Homes only reinforces it.

If you’re an investor looking to park your money in real estate, single-family rentals should be your focus. Target homes that check the right boxes—three bedrooms, pet-friendly features, and flexible layouts—and you’ll attract high-quality tenants willing to pay top dollar.

With sky-high home prices and interest rates, renting isn’t just a fallback anymore—it’s the preferred option for millions of Americans. And that spells long-term opportunity for smart investors.