More than half of this year’s new apartment developments are concentrated in the South, as construction across the country is expected to deliver 506,353 units this year. The volume of new deliveries remains considerably higher than average, although completions are slowing compared with the record-breaking pace seen last year, according to a RentCafe analysis.
Strong growth in the South is being driven by a growing population supported by job growth and economic expansion, with thriving Texas metros like Dallas, Austin and Houston leading the way. Developers continue to target the South thanks to its business-friendly environment, relative affordability and less restrictive zoning laws.
The South has consistently seen the highest in-migration of any region over the past decade. Texas and Florida, in particular, have been top destinations for interstate movers, and the two states will deliver nearly 30% of all new apartments in the United States this year, according to the report. Texas is on track to deliver 81,407 new apartments, while Florida will see 62,184 new units open statewide.
Nevertheless, New York continues to lead the country overall in apartment deliveries for the fourth year in a row, edging out Dallas by more than 1,000 units. Brooklyn and Manhattan are leading the Big Apple’s development spree, which is expected to top 30,000 units this year. Dallas is expected to add 28,958 new apartments before the end of the year, and Austin is on track to deliver 26,715 units.
Western markets will add 125,629 new apartments, representing 35% of all units estimated for completion. California leads the region’s apartment development with 40,110 units set to deliver, followed by Arizona with 22,067 units under construction. The Midwest trails with only 58,590 new units expected this year, led by Ohio with an estimated 9,958 new apartments and Indiana with 7,962 units underway. The Northeast will introduce a total of 56,521 new apartments, with the bulk of those being in New York with 20,657 units and New Jersey with 13,195 units.
Miami — the nation’s hottest rental market — ranks seventh among major U.S. metros for new apartment construction this year. Despite a 28.2% decline in apartment completions compared to 2024, the area is projected to see 15,666 new units open before the end of this year. Miami proper will see the largest share of new supply, with 5,301 units expected. Fort Lauderdale follows with 1,672 new rentals, while Hollywood is set to deliver 1,535 units.
Naples saw the largest increase in completions, quadrupling its units delivered over the past year. Chicago and its surrounding areas saw the steepest drop in deliveries, with units completed down 60.4%.
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