By RENTCafe
New apartment construction in the U.S. is flexing its muscle once again in 2022, despite pressing economic concerns and supply chain disruptions in the aftermath of the pandemic. And with 420,000 new rental units projected to be completed this year, multifamily construction is at a historic, 50-year peak. And with 15,988 projected new apartments in the pipeline, Metro Phoenix ranks No. 6 in the country for new apartment construction.
This Metro Phoenix apartment construction boom is mirrored by pent-up demand for apartments nationwide, especially as some renters postpone their dream to become homeowners amid soaring inflation and rising interest rates.
By and large, apartment developers have picked up the pace in both 2021 and 2022, almost unexpectedly exceeding even the most optimistic projections for the post-pandemic multifamily landscape.
“The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues,” said Doug Ressler, manager of business intelligence at Yardi Matrix.
Surprisingly enough, the New York metro is projected to deliver the most apartments in 2022, exceeding Dallas-Fort Worth from the top position for the first time since 2018. What’s more, developers in half of the top 20 metros have embarked on a veritable apartment building spree and are projected to hit their five-year highs this year.
Interestingly, there’s one big reason why so many metros are set to break their records from the last five years: As Ressler explained, “people who lived with family or friends during the pandemic formed independent households as employment and savings surged.”
Looking at the city-level data, Houston is the absolute leader as far as the number of apartments opened in the first half of the year. Hot on the heels of Space City is another construction-crazed Texas location, Austin, followed at a greater distance by Seattle, WA.
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