Real estate developers in the United States are now on track to complete more than 500,000 new rental units by the end of 2024, marking a new record in apartment construction.
The US is set to finish an unprecedented 518,108 new apartment units by the end of the year, marking a 9% increase from the rental units finished in 2023 and 30% more than were completed in 2022. By 2028, analysts expect at least two million apartments to come online, according to a new report from RentCafe.
"Looking ahead, 2 million apartments are set to come online by 2028, despite uncertainties in most markets that are causing fewer new projects to start," the report noted.
"Furthermore, about 47% of the 369 metros analyzed are likely to build more in the next five years than they did from 2019 to 2023."
This will be the first time in US history that the number of apartment completions will surpass the 500,000-unit threshold.
For the report, RentCafe analyzed apartment data from Yardi Matrix, which calculated apartment projections at the metro and city levels for 2024.
Which Areas Will See the Highest Number of New Apartments?
At least 60% of all new apartments expected to be finished by December are clustered in the top 20 metro areas in the country. Of the 518,000 units, New York is set to have 32,935 complete units this year--9,379 units will be in the Brooklyn area and 2,979 rentals will be in the Manhattan area.
Next to New York is Dallas, TX, with 32,932 units; Austin, TX, with 21,506; Phoenix, AZ, with 20,141; and Atlanta, GA, with 18,520.
As for apartment growth by 2028, the New York metro area will also have the most number of new units, with 150,327 rentals expected to be completed in the next five years. Rounding out the top five metros for new apartment construction anticipated over the next five years are Dallas, TX, with 108,178 units by 2028; Austin, TX, with 80,046; Miami, FL, with 75,736; and Los Angeles, CA, with 64,963.
