Are Townhomes the Answer to Maximizing B2R Profits?

When it comes to the build-to-rent (B2R) sector in 2025, the key to being successful lies in how quickly businesses can build and lease out units, according to Greenwood Village, Colo.-based architecture firm BSB Design. As such, townhomes appear to be an ideal segment for developers in the B2R market aiming to boost their return on investment. With their efficient designs, townhome units can help speed up construction and reduce costs compared with single-family homes or more complex multifamily units.

Modern townhomes can also be designed in a number of ways that appeal to the modern renter. By offering open layouts, private entrances, garages, and upscale finishes, builders are more likely to appeal to a wider range of renters while creating an ownership-like experience that supports higher price points and longer lease terms.

Townhomes don’t play favorites. Whether revitalizing an urban corridor, transitioning between city and suburbs, or filling in a master planned suburban community, they work. Scalability makes them ideal for infill lots or larger tracts. And with national momentum bolstering BTR in major markets, the demand is only growing. This year, builders and developers should seize townhome opportunities across all market types.