Eight years ago build-to-rent communities didn’t exist in the Katy and Fulshear area, local real estate agent Tim Sojka said.
However, as home prices and interest rates are growing, affordability indexes for homebuying in Katy and Fulshear are shrinking, making the build-to-rent market ideal for the existing suburban communities that draw people into its schools and job opportunities, officials said.
“It’s a great baby step to homeownership, somewhere between apartment living and owning a home,” Sojka said. “As a Realtor, I’d rather have people buy a house, but I see this as a training program for homeownership.”
The current situation
Since 2018, build-to-rent, or BTR, housing developments have emerged across Katy and Fulshear driven by rapid population growth and shifting housing preferences, said Doug Ressler, manager of business intelligence at real estate research firm Yardi Matrix.
While millennials may be interested in building wealth, he said he believes they’re delaying homeownership due to affordability challenges and shifting priorities, making Katy’s BTR market an increasingly vital and sustainable part of the region’s housing landscape.
Tricon Residential currently operates 18 BTR communities nationwide, including three in the Houston area—one of which is Tricon Peek Road in Katy, according to the company’s website.
Although BTR communities make up only about 10% of Tricon’s overall real estate portfolio, Senior Managing Director Andy Carmoody said the company plans to expand that share to better serve people facing barriers to homeownership as the number of Harris County residents who could afford a Katy home has fallen from 28% to 19% since 2024, according to the Houston Association of Realtors.
“We’re seeing families who’d like to live in a single-family home, in a neighborhood, in a community—who want to have a garage and a yard—choosing single-family homes to rent more often than they have historically because it’s more affordable and so much easier to get into,” he said.
What they offer
Hunter Dodson from Enclave at Mason Creek said renters can have the home experience without the “hassle of maintenance,” with features such as:
- Private yards
- Attached garages
- Smart home features
- Responsive service
Stephanie Windon, senior director of marketing and communications for Millers at Elyson, said residents prioritize shared community amenities, including:
- Walking trails
- Clubhouse
- Pet parks
The cause
Sojka said he attributes the boom in BTR developments to high interest rates, as many buyers wait for rates to return to pre-pandemic levels.
Yet even with lower interest rates, home prices have become less affordable for residents, according to the Houston Association of Realtors’ Affordability Report, with only 19% of Harris County households making enough income to qualify for a median-priced home in Katy and Fulshear in the first quarter of 2025.
Per HAR, the median home price in Katy rose to $336,250 in May 2025, representing a nearly 34% increase from the May 2020 median price of $251,500.
High interest rates make homeownership even less affordable, but ... home prices are still very high, and it’s a stretch for many families to get into their first home,” Sojka said.
Zooming in
Carmoody said he believes the average BTR tenant in Katy may have the potential for homeownership in the future, but due to high home prices, job uncertainty or lacking a down payment, they may prefer to rent, with Tricon’s rent being nearly 30% cheaper than Katy’s median mortgage.
“They’re just in a different situation or circumstance where renting is their preference or their need at this time instead of owning,” he said.
Moving forward
Ressler said Texas—particularly Katy—is appealing because of its supportive policies that streamline the building process compared to other national markets.
“You’ve got relaxed country living, good schools, diversity—those are the things people are looking for,” he said. “Millennials are aging and want something that looks and feels like a home but is still a rental. It’s not linear growth, but it’s definitely expanding.”
Carmoody said Tricon is eyeing high-growth areas like Fulshear, where rental demand takes time to mature but offers strong long-term potential.
According to housing data firm Population and Survey Analysts, there is expected to be an additional 798 newly occupied BTR units between 2024-28, cementing BTR’s role in the region’s housing mix.
