A new report shows that San Diego and Los Angeles are the only California cities among the top 20 metro areas that lead in new apartment construction within the first half of this year.
RentCafe’s most recent analysis of over 125 U.S. metro areas expects no less than 420,000 new apartments nationwide this year. According to the report, developers last completed more than 400,000 rentals within a year was in 1972.
San Diego entered the top 20 cities with 1,427 new units delivered in the first half of 2022. Los Angeles ranked in the top 10 with 2,204 units delivered so far.
Texas leads in apartment development, with four cities listed among the top 20 metropolitan cities. Houston tops the chart with 4,746 new units, Austin follows with 4,236, and San Antonio welcomed 2,394 new units. Dallas ranked just above San Diego with 1,507 new units.
Atlanta, GA, placed twentieth on the chart with 1,421 new units.
Officials with RentCafe highlighted New York as it expects to see a record 28,153 new apartments to be completed before the end of the year, which is almost 50 percent higher than the number of apartments that were completed throughout the metro in 2021.
Apartment data was provided by, Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks, and equity sources underwriting investments in the multifamily, office, industrial, and self-storage sectors. The apartment projections for 2022 were calculated based on a Yardi Matrix proprietary algorithm that includes confirmed and likely completions for 2021 based on the issuance of a certificate of occupancy.
“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.
