BTR under pressure: Making the numbers work

As the build-to-rent sector continues to mature, developers and operators are facing a new set of challenges. Higher costs, changing market conditions, pressure on margins, and the need to operate efficiently are forcing the industry to rethink how BTR schemes are delivered and managed.

At Build-to-Rent Fall 2026, we spoke to industry leaders about the challenges facing BTR from development through to operations, and how greater flexibility and better use of data could help the sector navigate the next stage of its growth.

Navigating the realities of BTR development

Britt Creer, President of Ranchland Homes, offers a practical perspective on the challenges of getting BTR projects from financing through to completion. He highlights how delays in areas such as civil design and permitting can quickly increase costs and put pressure on margins, while changing interest rates and market conditions can require developers to rethink their original strategy. Britt also shares how he has adapted projects from build-for-sale to BTR, highlighting the importance of being willing to change direction during the development cycle:

What does this mean for BTR development? With costs and market conditions continuing to shift, developers need to build flexibility into their strategies while keeping a close eye on timelines, costs, and the factors that can affect project margins.

Using data to drive BTR efficiency

Erica McLaughlin, Managing Director of Property Management at RangeWater Residential, looks at the challenges from an operational perspective. She highlights the pressure on BTR operators to run lean, particularly given the smaller unit counts of many BTR communities, and the importance of understanding where efficiencies can genuinely be found. Erica also discusses how RangeWater is using business intelligence and AI to make better use of its operational data, helping teams identify opportunities and make decisions faster rather than waiting for traditional reporting cycles:

What does this mean for BTR operations? As BTR matures, operational efficiency is becoming increasingly data-driven. The ability to turn information into action quickly could become an important differentiator for operators looking to control costs and improve performance.

The next chapter of BTR is about making every decision count

The BTR sector is entering a more mature phase, where success is increasingly dependent on what happens across the entire lifecycle of a scheme. From securing capital and managing development timelines to controlling operating costs and identifying new efficiencies, developers and operators are under growing pressure to make informed decisions at every stage.

The perspectives from Britt Creer and Erica McLaughlin highlight two sides of the same challenge: the need to remain adaptable. Whether responding to changing market conditions, finding ways to protect margins, or using data to make faster operational decisions, the ability to recognize what is changing (and act on it) is becoming increasingly important.

The opportunity now is to move beyond simply managing the pressures facing BTR and find new ways to build, operate, and optimize schemes for long-term performance.

Want to continue the conversation? Join industry leaders at Build-to-Rent Spring 2027 to explore the trends, challenges, and opportunities shaping the next phase of BTR — from development and investment to operations, technology, and resident experience.