Apartment completions to surpass 500,000 for first time ever

While the U.S. continues to maintain a steady pace of delivering new apartments, this year will be one for the record books. For the first time ever, new apartment completions will surpass the 500,000-unit threshold in 2024. By the end of the year, a staggering 518,108 units are expected to be completed, according to a recent RentCafe report.

This historic high marks a 9% increase in completed units compared to 2023, and a 30% rise from 2022. Overall, more than two million units are expected to be completed by 2028.

“The supply wave has brought 50-year high deliveries to certain metros … but the increased competition is slowing rent growth, especially in booming Sun Belt markets,” said Doug Ressler, Senior Analyst and Manager of Business Intelligence at Yardi Matrix.

Top Metros for New Apartments in 2024

New York, N.Y., and Dallas, Texas, nearly tie in terms of leading the U.S. in new apartment construction this year. New York is set to complete 32,935 units, with Dallas trailing behind by just three units (32,932). Austin, Texas, is third with 21,506 units.

It's no surprise that Texas markets are booming with new construction and population growth. Nearly 10% of all new apartments this year will come from these two Texas metros.

Top 20 U.S. Metros for New Apartments in 2024 — Image courtesy RentCafe

The report states that most of the apartments under construction—as well as those built in the last five years—are catered mostly to high-income renters with little focus on affordable options.

In the coming years, apartment deliveries are expected to slow. Developers are expected to deliver 15% less in 2025 (440,478 units), followed by 332,000 units in 2026 and a 10-year low of 319,000 units in 2026. A surge of deliveries isn't expected to happen until 2028.

Click here to read the full report.

Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.