{"id":18507,"date":"2017-08-07T05:00:15","date_gmt":"2017-08-07T12:00:15","guid":{"rendered":"http:\/\/www.yardi.com\/blog\/?p=18507"},"modified":"2026-02-22T15:27:46","modified_gmt":"2026-02-22T23:27:46","slug":"apartment-construction","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/apartment-construction\/","title":{"rendered":"Apartment Trends"},"content":{"rendered":"

We\u2019d need 4.6 million new apartments by 2030 to meet demand for rental living and keep prices in check, reports the National Multifamily Housing Council<\/a>. That\u2019s about 373K new units each year on average, a number that\u2019s rather optimistic considering the pace of apartment construction in the last decade. So how feasible is this plan? A recent study from\u00a0RentCafe<\/a> on the apartment market suggests the country\u2019s growing renter population need not be too concerned.<\/p>\n

According to data from real estate data provider Yardi Matrix<\/a>, apartment construction is at a 20-year high, with most of our country\u2019s biggest cities seeing significant upgrades in rental stock. After a slow post-recession period, the market started rebounding in 2012 and by 2014 new supply had amounted to more than 237,000 units delivered in one year, well above historical averages. Between 1997 and 2006, annual completions averaged 212,740 units.<\/p>\n

In 2017, apartment completions are expected to top 345,000, a 21% increase compared to last year\u2019s deliveries when more than 285,000 units saw the light of day.<\/p>\n

\"New<\/a><\/p>\n

Hot Urban Markets See Rents Softening as Developers Ramp Up Apartment Construction<\/h3>\n

After peaking in 2014 at 5.1%, monthly rent prices rose just 1.5% to $1,316 in May<\/a>, the lowest annual growth rate we\u2019ve seen in more than three years. In 2017, the average U.S. rent is expected to increase a modest 3.9%.<\/p>\n

\"rentgrowthtrends\"<\/a><\/p>\n

Does this mean apartment prices are finally taking a break from rent growth? Apparently so, and thanks to intensified apartment construction, that\u2019s even the case with some of the country\u2019s historically tight (or rather outrageously expensive) markets. Close to 6,200 new units entered the San Francisco metro area in 2016, with approx. 5,400 apartments expected to be delivered this year and another 9,500 under construction. While demand is still strong in the city, this flood of new rentals coming online is finally putting a damper on the incessant rent growth that pushed rental costs up a whopping 49% in the last 5 years.<\/p>\n

Rents in San Francisco<\/a> have been slowing down for the last 10 months, with the pace of growth currently at its lowest level in the last 2 years. Rents in May 2017 were $2,497 in the SF metro, a meager 0.5% increase y-o-y. By comparison, in May 2016 annual increases stood at 6.2%<\/a> and a year before<\/a> rent growth was in double digits, approx. 11.9%.<\/p>\n

And San Francisco isn\u2019t alone in the rent deceleration game. Rents are cooling in other urban hotspots favored by young professionals such as Houston, Austin, Denver, and Portland. Additionally, 6 of the country\u2019s top 10 priciest markets even experienced rent drops in May<\/a>, including Manhattan<\/a>, Boston<\/a>, and San Jose<\/a>.<\/p>\n

\u201cFrom an affordability standpoint, things are starting to look better for renters,\u201d says Doug Ressler<\/strong>, Yardi Matrix senior analyst. \u201cRent growth is slowing down, even in the country\u2019s most expensive markets and it doesn\u2019t stop at that. With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees, and free gym memberships.\u201d<\/p>\n

Want to read more about what’s trending in apartment markets across the country? Find the rest of this article here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

We\u2019d need 4.6 million new apartments by 2030 to meet demand for rental living and keep prices in check, reports the National Multifamily Housing Council. That\u2019s about 373K new units each year on average, a number that\u2019s rather optimistic considering the pace of apartment construction in the last decade. So how feasible is this plan? […]<\/p>\n","protected":false},"author":442,"featured_media":18508,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"yes","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2791,4],"tags":[2089,289,133,426,29,398,170,578,1169],"class_list":["post-18507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-matrix","category-news","tag-apartment-supply","tag-apartments","tag-demographics","tag-housing","tag-multifamily","tag-nmhc","tag-rentcafe","tag-trends","tag-yardi-matrix"],"acf":[],"yoast_head":"\nYardi Blog<\/title>\n<meta name=\"description\" content=\"We\u2019d need 4.6 million new apartments by 2030 to meet demand for rental living and keep prices in check, reports the National Multifamily Housing Council.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apartment Trends\" \/>\n<meta property=\"og:description\" content=\"We\u2019d need 4.6 million new apartments by 2030 to meet demand for rental living and keep prices in check, reports the National Multifamily Housing Council.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardi.com\/blog\/apartment-construction\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Blog\" \/>\n<meta property=\"article:published_time\" content=\"2017-08-07T12:00:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-22T23:27:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2017\/08\/Foundry-Lake-Street-Apartments-in-Minneapolis-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"586\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Yardi Blog Staff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Yardi Blog Staff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.yardi.com\/blog\/apartment-construction\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/apartment-construction\/\",\"name\":\"Apartment Trends - 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