Are Build-to-Rent Communities Better Investments Than Single-Family Homes?

Real estate investors in 2025 have more choices than ever — and one of the hottest trends is build-to-rent (BTR) communities. These are entire neighborhoods of new homes built specifically as rentals, often managed by a professional company.

But are they a smarter investment than buying a traditional single-family home? If you invest in Central Oregon — in places like Bend, Redmond, or Prineville — here’s what you need to know.

What Is a Build-to-Rent Community?

A build-to-rent community is designed from the ground up for renters. Instead of apartments, they typically feature detached or semi-detached single-family homes with small yards, shared amenities (like dog parks or playgrounds), and professional property management.

Benefits of Investing in Build-to-Rent

1. Turnkey & Low Maintenance

BTR properties are brand new, meaning fewer repairs in the first several years. Many come with management baked in, so you can be a hands-off investor.

2. Tenant Demand

Many renters want the feel of a single-family home without the commitment of ownership. BTR communities cater to this growing demographic — including remote workers moving to Central Oregon.

3. Predictable Cash Flow

Because the homes are identical or very similar, rents are easier to compare and manage. Vacancy rates in these communities also tend to be lower thanks to shared amenities and cohesive neighborhood design.

Benefits of Investing in Single-Family Homes

1. Appreciation Potential

Traditional single-family homes in established neighborhoods often see higher appreciation over time — especially in high-demand markets like Bend or Sisters.

2. More Control

You control who manages the property, when upgrades are done, and how to maximize returns.

3. Exit Flexibility

You can sell to a homeowner or an investor. With a BTR property, your buyer pool may be smaller if the whole community is rentals.

Central Oregon Market Perspective

Right now, Bend and Redmond are seeing population growth from remote workers and retirees, which is boosting rental demand. A BTR community could provide steady, low-maintenance income — but investors looking for long-term wealth building may still prefer single-family homes in desirable neighborhoods where appreciation is strong.

FAQs

Q: Are BTR communities available in Central Oregon yet?

A: Yes — Redmond and Bend have seen new BTR projects, though inventory is still limited compared to metro areas.

Q: Which has better cash flow?

A: BTR can have stronger cash flow thanks to lower maintenance costs and professional management, but it may have lower appreciation potential.

Q: Do banks finance BTR investments the same way as single-family rentals?

A: Often yes — but check with lenders, as some treat them as commercial investments depending on the number of units you buy.

Q: What if I want to live in the home later?

A: With a single-family home, that’s easy — you can move in. With a BTR property, this may not be an option if the community restricts owner-occupancy.