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Around 426,000 units are set to be completed in 2022, the highest volume for the U.S. apartment market in at least 40 years, one report shows.
Around 426,000 apartments are under construction and set to complete in 2022, the highest volume recorded for the U.S. apartment market in at least 40 years, according to a report by RealPage, a company providing property management software. The scheduled volume exceeds the 2021 completion total by about 17% and nearly doubles the long-term average.
The cities with the biggest wave of new deliverers are:
- New York City
- Los Angeles
- Newark, New Jersey
- Austin, Texas
- Washington, D.C.
The markets with just under 20,000 units scheduled include Los Angeles, Newark and Austin. In Houston, Washington, D.C., Dallas and Seattle, expected completions range between 17,000 and 18,000 units, while Atlanta is expected to gain about 12,000 new apartments, the report shows.
While most of those markets are used to big waves of new apartments, the inventory increase will be substantial, according to the report. In fact, the new stock in Austin will grow the existing base by about 7%, while Phoenix is slated to see a 5.7% boost. These are two of the biggest inventory increases expected in 2022 across the nation’s 150 largest markets, RealPage says.
"There are more dollars going into areas like Dallas, Atlanta, Phoenix, the Carolinas, Nashville, Denver and those kinds of places," Jay Parsons, vice president and deputy chief economist at RealPage, told Multifamily Dive. "Most of that is [because of] apartment demand fundamentals, but the trend started before the pandemic."
Among the nation’s largest 50 apartment markets, inventory growth leaders are all located in the southern or western regions, according to another report by RealPage. The markets with the largest inventory growth scheduled for 2022 are:
|Market||Scheduled Units||Inventory Change|
|Austin-Round Rock, Texas||18,375||6.80%|
|Raleigh/Durham, North Carolina||9,190||5.30%|
|Salt Lake City/Ogden/Clearfield, Utah||5,827||5.00%|
|Charlotte-Concord-Gastonia, North and South Carolina||8,989||4.30%|
|Denver-Aurora, Lakewood, Colorado||11,122||3.50%|
For more information from the RealPage report click here.
Andre Claudio is an assistant editor at Route Fifty.