U.S. Apartment Construction to Hit Record High in 2024

A Historic Milestone

In 2024, the U.S. apartment market is poised to achieve unprecedented heights. According to a recent study by RentCafe, developers are on track to complete a staggering 518,108 rental units by year-end. This remarkable figure represents a 30% increase over 2022 and a 9% surge from 2023. Notably, 2024 will mark the first time in U.S. apartment building history that the total number of completed units surpasses the 500,000-unit milestone1.

Leading the Charge

For the third consecutive year, New York takes the lead in apartment completions, with nearly 33,000 new units. Brooklyn alone accounts for almost 30% of this supply surge. Dallas follows closely, boasting 32,932 units, while Austin contributes 21,506 units. Together, these Texas metros will add nearly 10% of all new apartments nationwide by the close of 2024.

Strong Contenders

Phoenix and Atlanta round out the top five markets, expecting over 20,000 and 18,000 new apartments, respectively, by year’s end. These cities benefit from robust population growth and high demand.

Looking Ahead

RentCafe projects that the U.S. will add a whopping 2 million new apartments by 2028. Interestingly, approximately 47% of the 369 analyzed metro areas are set to build more apartments over the next five years than they did between 2019 and 2023. However, a slowdown is anticipated in 2025, with a 15% decline in completions compared to the record-breaking 2024.

Why does this matter? While the U.S. apartment market continues its upward trajectory in 2024, developers are adjusting their focus toward lower-risk projects in anticipation of future slowdowns. Economic conditions and demand will shape the path ahead, and by 2028, we may witness yet another surge in apartment construction.