Mortgage News - Multifamily Construction Top 3 Markets

Multifamily Construction Top 3 Markets

Mortgage News May 31, 2023

According to Yardi Matrix, the construction of multifamily housing in the United States was strong as the new leasing season began. Currently, there are approximately 1.1 million units under development across 4,910 properties. However, the rate of completed projects has been slow, with only 73,506 units being made available for occupancy from January to April this year. This represents less than 7 percent of the total units in the national pipeline and accounts for 20 percent of last year’s total of 369,827 units.

The national multifamily construction statistics have significantly decreased, primarily due to stricter financing requirements. This has resulted in a nearly 50% reduction in the number of new projects that commenced construction across the United States, with only 62,741 units breaking ground between January and March. This figure is half of the construction starts volume of 122,134 units recorded during the same period last year.

Austin, Texas has emerged as the leading market for multifamily construction in the United States, with 61,873 units under construction as of May 2023. While the number of properties under construction is lower compared to Dallas and Los Angeles, Austin developers are focusing on larger communities. In terms of completed units, Austin ranked fourth among the markets on the list. The city’s multifamily inventory added 16,093 units in 2022, trailing behind Dallas and Houston. In the first quarter of 2023, new construction starts in Austin declined compared to the same period in 2022.

Dallas, although it lost its top position in multifamily construction, remained a strong market. With 60,532 units under construction and 163,000 units in planning, Dallas delivered 2,016 units. It ranked below Phoenix, Miami, Atlanta, and Austin in terms of completed units. The demand in the Dallas-Fort Worth area helped maintain a robust construction pipeline, as it ranked second in new construction starts, just behind Austin. In the first quarter of the year, developers began construction on 5,864 units, slightly lower than the same period last year.

Miami ranked third in multifamily construction, with 44,532 units under construction across 159 properties. Additionally, there were 259,000 units in the planning and permitting stages. Deliveries amounted to 2,732 units, placing Miami behind Austin and Dallas. During the first quarter of 2023, developers started construction on 3,612 units, experiencing a 38.1 percent decrease compared to the same period last year.

Need a list of real estate agents in your area? Contact Jennifer Swanson at 260-223-9203 or Jennifer@SpecialtyContactDatabases.com

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