Apartment Construction Reaches a 50-Year High
By the end of the year, 420,000 apartments are anticipated to be erected countrywide, according to the most recent RentCafe study.
According to RentCafe's Yearly Report, which uses information from Yardi Matrix, no fewer than 420,000 new apartments are anticipated to be constructed nationally by the end of 2022. Since 1972, there haven't been more than 400,000 apartments delivered. The announcement comes at an opportune time because rising interest rates and inflation have led to record renter demand.
* 2022 data is an estimate and subject to change
Map: RentCafe Source: Yardi Matrix Get the data Created with Datawrapper
Dallas-Fort Worth loses its top spot, which it has held since 2018, to the New York metro area.. Dallas-Fort Worth will likely supply 23,571 units this year, moving it up to second place in the country, while New York has approximately 28,000 units planned.
Construction activity wise, Denver consistently ranks among the top metros in the country. Since 2000, there has been a 40% increase in the city of Mile High's apartment supply. A record-high number of apartments—roughly 24,000—are being built. Apartment availability in Denver will increase by an additional 8.9% after these spaces are finished.
Source: CoStar Multi-Family Market Report: Denver, Colorado
By the end of the year, we’ll be expecting close to a 10% increase in the multifamily sector in Denver. Considering escalating land and construction prices, It is now quite challenging to budget for housing. Nevertheless, the Denver City Council approved an affordable housing policy that went into effect on July 1 to address this issue.
This policy mandates that new housing complexes with 10 or more units set aside 8–15% of their units as affordable. Those who oppose the proposal are worried that it would result in a fall in Advocates point to a quantifiable number of affordable units that will become accessible in future deliveries as developers shift their attention to markets with fewer limitations.