By 2030, the nation will need about 4.6 million new apartments to meet demand and keep prices in check, according to the National Multifamily Housing Council. To reach that number, about 373,000 new units, on average, will be needed each year.
The nation is getting closer to meeting the growing demands from renters. Apartment construction is at a 20-year high, according to data from RentCafe and Yardi Matrix.
Apartment completions are expected to top 345,000 units this year, making a 21 percent increase compared to last year’s deliveries of about 285,000. Rental price hikes are slowing after peaking in 2014 at a 5.1 percent increase. Monthly rental prices rose 1.5 percent to $1,316 in May, the lowest annual growth rate in more than three years, RentCafe notes.
“From an affordability standpoint, things are starting to look better for renters,” says Doug Ressler, Yardi Matrix senior analyst. “Rent growth is slowing down, even in the country’s most expensive markets and it doesn’t stop at that. With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees, and free gym memberships.”
The 10 metros with the most apartment projects expected to be delivered in 2017 are:
- New York: 26,739
- Dallas-Fort Worth, Texas: 24,960
- Houston: 17,960
- Los Angeles: 14,667
- Miami: 13,466
- Denver: 13,142
- Washington, D.C.: 13,098
- Atlanta: 11,797
- Seattle: 10,114
Source: “Apartment Construction at its Highest Level in 20 Years, with Denver, Nashville Joining NYC as 2017’s Hottest Rental Markets,” RentCafe Blog (July 12, 2017)
