New Apartment Construction Perseveres in 2021

The issues which have challenged residence patrons throughout the pandemic have been effectively documented, with skyrocketing costs, low stock and bidding wars topping the record. New residence development has additionally confronted difficulties, with the closure of presidency companies that issued permits and interruptions in the availability chain of development supplies (lumber in specific).

But there’s excellent news for renters in 2021, regardless of the pandemic: Construction of rental properties has remained at almost the identical tempo as in the earlier 4 energetic years of house constructing, in line with a brand new report from RentCafé. In 2021, for the fifth consecutive yr, greater than 330,000 new rental items are anticipated to open throughout the nation, down simply 2.5 p.c from 2020.

This week’s chart reveals the 20 metropolitan areas with essentially the most new items projected to open in 2021, and the way that quantity has modified since 2020. RentCafé analyzed development of rental buildings nationally and included solely these with greater than 50 items. Metros with fewer than 300 items in complete, or fewer than two rental buildings, have been additionally not included, leaving 109 metro areas to compete.

New improvement in the Dallas metro space has been on the upswing in current years, and that space landed on the high of the record, with 21,173 new rental items anticipated to open this yr (though the quantity represents a 13 p.c lower in comparison with 2020). The New York metro space was second, with 19,375 items set to open, an 11 p.c acquire over the earlier yr. (It needs to be famous that the New York figures don’t embody constructing information from the Bronx and Staten Island.)

In third place was booming Phoenix, with 15,846 new items projected, a year-over-year acquire of 76 p.c. The biggest yearly improve among the many high 20 was Charlotte, N.C., in 10th place for the overall variety of items; Charlotte is anticipated to realize 10,723 items in 2021, a 100 p.c improve over 2020.

Only six metro areas, together with the aforementioned Dallas, are anticipated to see fewer new flats than they did in 2020. Denver’s new unit depend dropped essentially the most over the earlier yr among the many high 20 metros, down 46 p.c, with 5,581 items anticipated to open.

Metros With the Most New Apartment Units

Apartment development has been retaining tempo with earlier years regardless of the pandemic.

NUMBER OF

UNITS ADDED

ONE-YEAR

CHANGE

METRO

−13.zero%

+11.zero%

+76.zero%

+12.zero%

+9.zero%

+9.zero%

−10.zero%

+5.zero%

+5.zero%

+100.zero%

−5.zero%

−zero.three%

+78.zero%

+36.zero%

−19.zero%

+46.zero%

+79.zero%

−46.zero%

+47.zero%

+45.zero%

Dallas

New York

Phoenix

Houston

Los Angeles

Washington

Austin, Texas

Atlanta

Miami

Charlotte, N.C.

Boston

Minneapolis

Orlando, Fla.

San Francisco

Seattle

Tampa, Fla.

San Jose, Calif.

Denver

Kansas City, Mo.

Raleigh, N.C.

21,173

19,375

15,846

15,760

13,682

12,607

11,919

11,409

11,235

10,723

eight,455

eight,250

eight,211

7,872

7,574

6,690

5,625

5,581

four,967

four,836

METRO

NUMBER OF UNITS ADDED

ONE-YEAR CHANGE

Dallas

New York

Phoenix

Houston

Los Angeles

Washington

Austin, Texas

Atlanta

Miami

Charlotte, N.C.

Boston

Minneapolis

Orlando, Fla.

San Francisco

Seattle

Tampa, Fla.

San Jose, Calif.

Denver

Kansas City, Mo.

Raleigh, N.C.

21,173

19,375

15,846

15,760

13,682

12,607

11,919

11,409

11,235

10,723

eight,455

eight,250

eight,211

7,872

7,574

6,690

5,625

5,581

four,967

four,836

−13.zero%

+11.zero%

+76.zero%

+12.zero%

+9.zero%

+9.zero%

−10.zero%

+5.zero%

+5.zero%

+100.zero%

−5.zero%

−zero.three%

+78.zero%

+36.zero%

−19.zero%

+46.zero%

+79.zero%

−46.zero%

+47.zero%

+45.zero%

Source: RentCafé

By The New York Times

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