For the fourth year in a row, the Dallas-Fort Worth metro area leads the pack in projected number of apartment units coming online nationwide. The New York metro area finished second.
That’s according to a new report from RentCafe, which estimates that 334,000 apartment units will be delivered in the U.S. in 2021. The report tallied the 20 metro markets with the highest number of projected deliveries. While the figure is only 9,000 units below last year’s total, it marks the lowest projected output since 2016, when 327,000 units were delivered.
In Dallas-Fort Worth, builders are expected to complete 21,173 rental units, according to RentCafe. The total is still about 13 percent below last year’s figure.
Just behind was the New York metro area, which is projected to have completed 19,375 units. That would be an 11 percent increase from a year ago. Queens leads the way with more than 3,400 projected units, followed by more than 2,400 in Brooklyn. Curiously, the Bronx and Staten Island are not included in the total.
Developers and builders will have had to overcome pandemic-related obstacles like a labor shortage and high cost of materials to deliver the units this year. They likely won’t meet the growing demand of renters, many who are getting priced out of the housing market. A recent study did find home prices were beginning to normalize.
RentCafe analyzed apartment construction data from Yardi Matrix. The data only included buildings with at least 50 units.
The report found that Phoenix finished third in overall deliveries, edging out Houston by fewer than 100 units. The Phoenix market has been growing at a rapid rate. It finished 15th in 2019 and eighth last year before jumping third. The expected total in 2021 would be a 76 percent increase in units delivered from 2020.
Charlotte, North Carolina, had the biggest year-over-year increase. It doubled the number of projected deliveries from 2020. San Jose, California, was next, posting 79 percent more deliveries; Orlando posted a 78 percent increase.
The city with the biggest drop in apartment deliveries was Denver. It’s projected total is 46 percent below 2020. Seattle is expected to fall 19 percent under last year.
Miami is projected to add 11,235 units this year, a 5 percent increase from last year. Those apartments are focused in Miami, though Fort Lauderdale, West Palm Beach and Doral are all projected to add more than 1,000 units each.
In Los Angeles, 13,682 units will be added this year, a 9 percent increase. Almost half of the units are located in the city of L.A.; Pomona finished second with just over 700 units.
Meanwhile, San Francisco is set to hit a five-year high in apartment units added with 7,872. That’s a 36 percent increase from 2020. Nearly half of those units are in Oakland, which is projected to add more than 3,100 this year.
Chicago did not make the list.