Layton Construction is bringing commercial-sector sophistication to the build-to-rent (BTR) market, a sector experiencing significant growth. By applying the same planning and execution used in healthcare and industrial projects, the firm is addressing the unique needs of large-scale rental communities that traditional residential builders may struggle to meet.
The build-to-rent market, which consists of entire neighborhoods of single-family homes built specifically for renters, is expanding rapidly. In 2024, the sector saw 39,000 completed houses, a 15.5 percent increase from 2023. With over 350,000 BTR units currently in the market and an additional 78,000 expected by 2027, the industry is seeing a shift toward massive developments.
Layton Director of BTR Larry Johnson noted that traditional homebuilders may not be aligned with BTR needs because they often focus on custom options for individual owners. In contrast, BTR developments typically use a limited number of floor plans, allowing for higher performance and predictable sequencing. Layton Project Manager Cooper Sharpe stated that this flow helps provide clients with predictable outcomes and workloads for trade partners.
PEG Companies Director of Development Tyler Phelps highlighted the value of Layton's commercial and multifamily experience. After a previous residential builder could not meet project requirements under a guaranteed maximum price, Layton stepped in to assist with the Alante Homes project at Spring Run in Caldwell, Idaho. This 233-home community is the largest build-to-rent community of its kind in Idaho.
A key differentiator for Layton is its use of advanced preconstruction and visualization technologies. The company utilizes 4D schedules and Building Information Modeling (BIM) coordination to identify issues before they occur, particularly regarding complex underground utilities in confined spaces. Cooper Sharpe mentioned that these tools change the conversation with municipalities accustomed to traditional residential builders.
Layton's expertise also extends to managing sophisticated amenities. Tyler Phelps noted that luxury BTR projects often include large clubhouse facilities that require more sophistication than many single-family contractors are capable of managing. For the Alante Homes project, Layton's advice on foundation types helped the developer save costs.
Layton Construction is currently managing several BTR projects across the country, including a mixed-use community in Nashville that combines townhomes, mid-rise residential, and podium construction. As the American suburban landscape evolves, the company continues to leverage its commercial expertise to meet the demands of the growing build-to-rent market.
