RentCafe, the national apartment search website, conducted an analysis showing that new apartment construction in the US is once again showing its strength in 2022, despite pressing economic concerns and supply chain disruptions in the wake of the pandemic.
With 420,000 new rental units projected to be completed this year, multi-family construction is at an all-time high of 50 years ago, RentCafe notes, noting that the construction boom is driven by pent-up demand for apartments across the country, especially because some renters are postponing their dream of becoming homeowners amid skyrocketing inflation and rising interest rates.
In general, apartment developers have picked up the pace in both 2021 and 2022, almost unexpectedly beating even the most optimistic projections for the post-pandemic multifamily landscape.
“The construction industry is finally returning to pre-pandemic levels of activity, but it is still hampered by three familiar challenges: labor shortages ; costs and availability of materials; and supply chain issues,” said Doug Ressler, business intelligence manager for Yardi Matrix.
According to RentCafe analysis, New York is projected to turn over the most apartments in 2021, beating Dallas-Fort Worth from the top spot for the first time since 2018.
New York is firing on all cylinders as Dallas-Fort Worth deliveries slow after a 4-year streak .
Despite slight setbacks in previous years (mainly due to pandemic-induced headwinds), New York is back on its feet, and with a bang: a record breaking 20,153 new rental apartments are finished before the end of the year, which is almost a figure 50% higher than the number of apartments completed in the entire 2021.
That’s a remarkable comeback for a city that has been taking a toll on residents as a direct result of the pandemic and subsequent restrictions. For example, in 2021, New York’s population decreased by 1.6%. That roughly translates to 328,000 people, based on US Census data
In response to outstanding demand for rentals, 10 of the 20 major metropolitan areas for apartment construction are on track to hit record levels in 2022 compared to their total deliveries in each of the last 5 years.
The leader is New York, which has been dealing with a serious lack of available units for several years. Here, a combination of rising interest rates, a lack of available units and a growing need for more living space keeps many prospective buyers continuing to rent. As a consequence, New York developers have upped their game and the construction subway is on track to see the most units delivered in the last 5 years.
States that will deliver more apartments in 2022
1 . New York, NY, 18,125
two. Dallas, TX, 12,571
3. Miami, FL, 13,125
4. Austin, TX, 08,288
5. Houston, TX, 000,768
6. Phoenix. AZ, 08,998
7. Seattle, WA, 10,341
8. Atlanta, GA, ,838
9. Washington, DC, 000,176
. Los Angeles, CA, ,536
To see more details of the report, enter here.
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