New Apartment Construction Trends

 

According to the latest data from the National Association of Realtors, the construction of new apartments is on a steady decline. The housing crisis, the difficulty in finding qualified workers, and sky-high lumber costs are affecting the construction industry, but the numbers are still impressive. For the fourth year in a row, the Dallas-Fort Worth metro is expected to deliver the most units, followed by Orlando, Boston, and Phoenix. Other metros are also expected to deliver impressive numbers of new apartments.

While New York City and Boston have long-standing housing shortages, Raleigh NC and Kansas City MO are smaller metros with a growing number of apartment communities. According to the data, nearly 5,000 apartments are planned for the region, including a few in Staten Island and the Bronx. The lack of new construction is causing the rising prices of apartments in these metros. However, the lack of new apartments does not mean that rents will fall.

Future demand is largely driven by immigration, and while it has become a hot topic in the news, it will continue to grow as the population of the United States continues to rise. While immigration will continue to account for about half of the country's growth, this increase in demand will affect all age cohorts and income levels. To meet this demand, developers will need to build more than 4.6 million new apartments in the next few years.

In some metro areas, the number of New Apartments is expected to double. For example, the San Jose metropolitan area is projected to add 5,829 new apartments this year, which is an impressive number for a tech hub. In Boston, where rents are already very high, the addition of 30 percent of new apartment units is an impressive sign of an upcoming housing boom. But the city's affordability crisis is a major factor in the rise of new apartment units, so it is important to be aware of the trends.

The research team at RentCafe conducted a nationwide survey to determine the new apartment construction trend. In New York, the research team looked at 109 U.S. metropolitan statistical areas to determine the rate of growth of new apartments. Its data is based on apartment data from the Yardi Matrix, a multifamily asset management tool. Using this data, investors can accurately assess the growth of their investment portfolio.

The Orlando metro is expected to surpass its own construction record this year. After falling for two years, the Orlando metro is projected to deliver 8,211 new units this year. In the past five years, the number of new apartments in the city has tripled. Despite the drop in construction, the market is still on a steady upward trend. The U.S. Census Bureau estimates that the number of completed apartments is 283,114 in 2019. This figure is down from the peak level of the previous two years.