Five-Year Low Nationally

Apartment Construction in 2020 is at a five-year low nationally, Down 12% From 2019

With the Covid-19 pandemic further complicating an already visible slowdown in apartment construction since its 2018 peak, new completions across the country are starting to mirror the downward trend following the 2008 crisis. According to Yardi Matrix, 283,114 new apartments are expected to be completed this year, a significant drop of 12% compared to 2019. The data refers to rental apartments in large-scale buildings of 50 units or more.

New Construction 2008-2020

New Apartment Deliveries

Top Metro Areas

Top 20 Apartments

Miami Bust

Miami Metro Bust

Boom and Bust Highlights

  • With 283,000 new units expected to hit the market this year, apartment construction dropped a significant 12% compared to 2019. The pandemic further complicates an already visible slowdown in apartment construction, bringing the supply of new apartments at a 5-year low in 2020.
  • Overshadowing New York metro for the third consecutive year, the Dallas-Fort Worth area is first in the nation in terms of apartment construction, set to complete 19,300 new units by the end of 2020.
  • 13 of the 20 most active large metros are expected to complete fewer units compared to last year. Miami metro is experiencing the biggest drop, 53%, down from a whopping 12,500 deliveries in 2019. 
  • The San Jose metro area leads the only 7 large metros projected to build more this year, with a 100% increase in new apartments. Despite doubling its apartment construction, Silicon Valley is adding a relatively low number for a giant tech hub, 5,800 units. 
  • At the city level, Austin is leading nationwide with the most apartment completions in H1, 3,800 apartments, followed by San Antonio, Denver, and Charlotte. Brooklyn rounds up the top 5, having delivered around 2,100 units, on par with Chicago. 

In those areas where construction is artificially low rental prices will soar. 

But in those areas subject to human flight, prices could crash. Illinois, NYC, and San Francisco are leading candidates of the latter.

Mish 

Apartment Construction in 2018 Expected to Decline 11% After Strong 6-Year Run

The Yardi Matrix/Rent Cafe expects apartment construction to decline in 2018 for the first time since 2011.

Glut in Luxury Apartments: Boom Set to Fizzle in 2017

Real estate is has been one of the economic bright spots in the US for several years. But rising interest rates and a glut of luxury apartments portends a slowdown in 2017.

Amazon's Split HQ Will Spark Apartment Boom in NY Queens and VA Crystal City

Amazon's decision to split its headquarters will also split rental needs. Expect an apartment boom in two cities.

Texas Has Four of the Top 5 Cities for New Apartment Construction

A Texas apartment boom began at over a decade ago. It has recently picked up steam with Dallas, Austin, Houston, and San Antonio leading the way.

23 Cities Have 5-Yr Home Price Gains of 40%, Case-Shiller-20 Up 57% in 6 Yrs

Point2Homes notes 23 US cities had 40% or more home price appreciation in 5 yrs. I compare to Case-Shiller 20 metro area

No WSJ, Gold is Not the New Unobtanium: Where to Buy?

The Wall Street Journal discusses an alleged epic shortage of gold calling it ‘Unaffordium and unobtanium’.