One is that, given that the attractiveness of owning vs. renting can vary depending on the person and the state of the housing market, making a broader array of rental options available for people is a positive thing. I remember years ago when I was trying to find a large (3+ bedroom) place to rent, and how difficult it was to find rentals that size in the area I was looking in. Giving people more ways to purchase housing is good, the same way it’s good for people to have the option to buy or lease a new car.

Second, it’s clear that many folks strongly believe that large-scale corporate ownership of rental housing (which would include BTR communities) is something that can have negative effects on the housing market. But I think it’s more useful to think of the popularity of rental housing as something that’s a product of the housing market: it’s a natural consequence of housing getting increasingly unaffordable thanks to high interest rates and skyrocketing housing prices. Shutting down BTR is a poor way to address that problem; what we need to do is build more housing and develop construction methods that let us construct buildings more cheaply.

A fantastic writeup by Construction Physics on the birth of build-to-rent housing, it's growth, and current controversy.