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Apartment Construction to Break Record in 2024: Which US Cities Will See the Most? A report from RentCafe shows new apartment construction in the United States is expected to reach a record high of 518,108 in 2024, reports Mary Salmonsen in an article for Multifamily Dive. That sounds like good news for renters feeling the housing affordability crunch. However, according to the same report, the majority of those units are high-end projects that cater to middle- and higher-income renters. It also predicts says new apartment construction will likely fall year over year between 2025...Read More>>> https://buff.ly/4g48aTd #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #Construction

Over the past two years, the U.S. multifamily market has seen unprecedented levels of new apartment construction, outpacing demand and raising the national vacancy rate from a low of 4.8% in 2021 to 7.9% in mid-2023. Despite the addition of 1.5 million rental units, only 820,000 absorbed, the market is not overly saturated compared to pre-pandemic levels. To return to a 6.6% vacancy rate seen in late 2019, approximately 280,000 units need to be absorbed. While markets like Austin and Dallas-Fort Worth have notable excess supply, other cities like Chicago, Orange County, and San Jose have managed their supply more effectively, with vacancy rates below pre-pandemic levels due to more conservative construction practices.

As apartment construction slows across the U.S., big investors are betting on higher rents as a result. With fewer new buildings coming to market, the supply of apartments is shrinking, leading experts to anticipate a boost in rent growth and property values. Developers are halting projects due to rising interest rates and tighter financing, leaving investment firms to seize opportunities in existing properties. Will the slowdown continue, and how will it affect rental markets nationwide? Continue reading The Wall Street Journal article to find out more about the changing landscape in multifamily real estate.

New U.S. apartment construction is expected to reach a record high this year, with developers on track to deliver an estimated 518,108 units by the end of 2024, according to a report by RentCafe.  Nearly 60% of the expected deliveries are clustered in the 20 most active new multifamily construction markets. New York City leads the list for the third year in a row, with an estimated 32,935 units expected to come online. Dallas’s estimate is only three units behind at 32,932.  Looking ahead, approximately 2 million new apartments are expected to be available in the U.S. between 2024 and 2028. Nearly half — 47% — of the 369 metros analyzed in the report are likely to build more apartments in this period than they did between 2019 and 2023. City of New York City of Dallas RentCafe.com   Housing Analysis and Commentary – Canada – July 2024 - https://lnkd.in/g5fyhEFZ

🏘️ Only 52% of newly constructed apartments in Q2 2024 were rented within 3 months of completion, the 2nd lowest reading since 2020. 📉 This is down from the 74% record posted in Q3 2021, according to Redfin. 🔻 1-bedroom and 2-bedroom apartments saw the biggest declines driven by the spike in new apartment construction. 📈 Apartment completions jumped 22.6% year-over-year to 117,500 in Q2, the highest in at least 12 years. 🚀 Completions are up by a whopping 56.6% over the last 2 years. 👉 Does the the US housing market seem to be slowing??? What do you think? Leave us a comment below!

New multifamily supply is slowing down. We anticipated delays and a reduction in new apartment construction starts, and it's playing out exactly as expected. According to recent reports, developers are pausing projects due to rising interest rates and stagnant rents. This trend reduces new future supply in the market, which positions our properties to benefit significantly. With fewer new apartments coming online and assuming continued demand, we foresee an increase in rents for our properties in the coming years after the current new deliveries are absorbed. Read more about the market shift here: https://lnkd.in/g_T_CcqG To learn more about us and our investment thesis - submit a form on our website - https://lnkd.in/gX5_U_Pu #markets #development #supply

The U.S. is experiencing the biggest apartment construction boom in 40 years, adding over 1.2 million new units in the last two years! 🏙️ With demand rising to the highest levels since 2021, these new spaces are quickly filling up. If this demand continues, paired with a strong economy and high housing prices, we may see landlords gaining more pricing power in 2025. Here’s what to expect: 🏠 Over 672,000 units completed by the end of 2024 🏢 Fewer new units are expected in 2025 and even fewer in 2026. This means available apartment inventory could start tightening up. As we look ahead, renters may want to lock in rates now, while landlords could see an opportunity for rental growth in the future. amy@cincoranchrealtygroup.com 8322360699 #CincoRanchRealtyGroup #AmyLookabaugh #cincoranchrealtygroup #amylookabaugh #realestatemarket #rentaltrends #apartments #housingmarket #2025realestate #newapartments #realestateinsights #compass #agentsofcompass #compassfulshear #compasstexas #texasrealestate #compassrealestate #compasseverywhere

BREAKING: Only 52% of newly constructed #apartments in Q2 2024 were rented within 3 months of completion, the 2nd lowest reading since 2020. This is down from the 74% record posted in Q3 2021, according to Redfin. 1-bedroom and 2-bedroom apartments saw the biggest declines driven by the spike in new apartment #construction. Apartment completions jumped 22.6% year-over-year to 117,500 in Q2, the highest in at least 12 years. Completions are up by a whopping 56.6% over the last 2 years. The US #housing market seems to be slowing.

Once again, New York remains at the forefront of apartment construction, holding its position as the top market in the U.S. for the third year running. With over 600,000 multifamily units expected to be completed across the nation in 2024, New York continues to show unmatched resilience and demand in the sector. However, this boom is not without its challenges. Industry reports suggest that construction delays are increasingly being caused by challenges in securing financing and concerns over the economic viability of projects. These factors are expected to influence the timing of future apartment completions and could reshape rental market trends as the sector adapts to the surge in new supply. Is your project facing financial hurdles or delays? BRIX Funding is here to provide fast and flexible funding to keep your construction timeline on track. Read more about this trend and what it means for the industry in the full article from GlobeSt.com below. #RealEstate #Construction #NYC #BRIXFunding

Many may find this shocking, but I don't. When fewer apartments are built, rents go up. Supply and demand is a simple concept that applies to housing production just like everything else in the marketplace. Do you believe if we build more housing, rents will decrease? Apartment Construction Is Slowing, and Investors Are Betting on Higher Rents - WSJ https://buff.ly/3B69YLq #housing #apartments #development