New Apt. Supply Lags Demand in Biggest Metros

San Francisco is among the cities with the biggest gap between job growth and multifamily development, says Apartment List.

SAN FRANCISCO—With concerns in the air about overbuilding in some markets, the flip side is undersupply, which may be considerably more widespread. A new report from Apartment List says that only 10 of the nation’s 50 largest metro areas have produced enough new housing to keep pace with job growth in recent years.

The report by senior growth associate Chris Salviati sees the demand/supply gap as particularly acute in many of the nation’s largest cities, including San Francisco, Boston and New York City. “As the most desirable jobs cluster in these metros, restrictive zoning and bureaucratic hurdles slow the pace of new construction,” Salviati writes. “With supply failing to increase in line with demand, rents have been increasing to levels that are only affordable to those with the highest-paying jobs.”