1.2 Million New Apartment Units in the US Over the Last Three Years

1.2 Million New Apartment Units in the US Over the Last Three Years

Oaklakeapts.com

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In the last three years, construction crews have delivered a record 1.2 million new apartment units in the U.S., marking an unprecedented surge in the rental market.

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About 41% of the entire renter population in the U.S. resides in just 20 high-growth metropolitan areas, where the bulk of the new apartments were built. Demand in other areas remains high.

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An overwhelming 89% of newly constructed apartments over the past three years cater to high-income renters. This has created challenges for those seeking affordable housing.

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Dallas takes the lead in apartment construction since 2020, followed by New York and Houston. On a city level, Austin and Houston have been at the forefront.

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Economic uncertainties, rising construction costs, and stricter lending standards are expected to slow down the construction of new apartments.

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Interest rates on construction debt have also increased, impacting project feasibility.

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Chicago is set to add over 6,000 new apartment units in 2023, although it lags behind major cities like New York and Dallas. Texas, with Dallas and Austin, continues to see substantial apartment construction.

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The number of new apartment units is predicted to decline, from 484,000 in 2024 to 408,000 in 2025. The construction industry is expected to gradually recover by 2027 and 2028.

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Read Also - New Construction Sales Surge in Q3

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