New apartment construction tops 500K units this year, more than half in 1 region

New apartment construction in the U.S. is flexing its muscle again in 2025, with an estimated 506,353 units expected to be opened nationwide by the end of the year.

While this number is lower than the record-breaking new apartment developments seen last year, it remains significantly higher than the annual totals recorded each year since 2015. Accordingly, even with the historic wave now cresting, the volume of new deliveries remains considerably higher than average, reflecting continued high demand for rental apartments.

Interestingly, the South is estimated to welcome more than half of all new apartment developments built nationwide this year — likely due to the region’s status as a “migration magnet” supported by job growth and economic expansion in the last decade.

That said, major Texas metros like Dallas, Austin and Houston are leading this building boom in the region. Specifically, developers continue to target the South due to its “business-friendly environment, relative affordability and less restrictive zoning laws, which stand in sharp contrast to the more restrictive frameworks found in coastal gateway markets,” said Doug Ressler, senior analyst & manager of business intelligence at Yardi Matrix.

“Southern metros typically offer streamlined approval processes and fewer regulatory hurdles, making it easier to bring multifamily projects to market. At the same time, elevated home prices and a shortage of attainable for-sale housing are pushing more residents toward rentals. For many households, single-family (housing) ownership is simply out of reach — fueling demand for rental housing.”

Doug Ressler
Senior Analyst & Manager of Business Intelligence, Yardi Matrix

However, the New York metro area continues its reign as the top builder for the fourth year in a row, fueled by a development spree in the Big Apple’s boroughs, especially Brooklyn and Manhattan.

More apartments are coming to the South than in any other U.S. region, despite headwinds

Fueled by the Sunbelt Boom, renters in the South will benefit from an estimated 265,613 brand-new apartments before the end of December. That’s a whopping 52.5% of all new apartments set to open nationwide this year, highlighting the region’s powerful demographic pull. This unprecedented level of new apartment developments is a direct response to the massive influx of people and capital into the Sunbelt states throughout the last decade, driven by job growth and a lower cost of living overall.

In fact, the South has consistently seen the highest in-migration of any U.S. region since at least 2015, with more people moving in than moving out. Leading this trend are metro areas like Austin, TX; Phoenix; San Antonio; and Fort Myers, FL, which saw some of the nation’s fastest population growth rates from 2020 to 2021.

Texas and Florida, in particular, have been top destinations for interstate movers, and this influx has sustained exceptionally high demand for housing. As such, in 2025, Texas is on track to open 81,407 new apartments, while Florida will see 62,184 new units open statewide. Accordingly, new apartment deliveries in these two states alone are projected to make up almost half of all completions in the South, as well as nearly 30% of all new apartments in the U.S.

Meanwhile, the West is set to introduce 125,629 new apartments by year-end, which represents almost 25% of all units estimated for completion nationwide in 2025. Leading the charge in the region are California with an anticipated 40,110 new apartments and Arizona with 22,067.

Following at a great distance is the Midwest, where renters will have 58,590 new units to choose from by the end of 2025. Here, Ohio is the region’s busiest builder with an estimated 9,958 new apartments to be opened by year-end, followed by Indiana with 7,962 anticipated units.

Next, the Northeast will introduce a total of 56,521 new apartments, the bulk of those being in New York (20,657 units) and New Jersey (13,195 units).

New York metro tops new apartment construction again, outpacing Dallas by 1,000+ units

For the fourth consecutive year, the New York metro area leads the nation with 30,023 new apartments set to open in 2025, down 8.4% since the previous year. Even so, it’s worth noting that while the gap between New York and Dallas was just a few units in 2024, the distance between the two metro areas has widened to 1,065 apartments this year.

This growing disparity highlights New York’s sustained momentum in new apartment developments, driven by robust demand, ongoing investment and large-scale projects.

Unsurprisingly, nearly half of the new apartments in the New York metro (14,481 units) are set to open in just three New York City boroughs. Leading the way is Brooklyn, with 7,189 new units expected by year’s end. Then, trailing at a considerable distance is Manhattan, where renters will benefit from 4,662 brand-new apartments this year, followed by Queens with 2,630 new rentals.

And, across the river in New Jersey, developers are on track to complete 1,392 apartments in Newark.

The Dallas metro area comes in second among the nation’s top metros for new apartment construction in 2025. Here, 28,958 new apartments are expected to open before the end of the year. That’s a significant 22.4% decrease in completions compared to 2024.

Even with this slowdown, the Metroplex remains one of the top places in the country for new apartment completions. As such, this dip in construction may just be the market taking a breather after a period of intense growth. But, with so many people still moving to the area, the demand for housing remains high.

For example, with 5,778 brand-new apartments on track to open this year, the city of Dallas is the metro’s busiest builder, followed by Fort Worth, TX, with 3,793 expected units. Not to be outdone, McKinney, TX — which tops the list of best cities for renters in 2025 — is set to welcome 2,006 fresh apartments before the end of December.

Taking third place in new apartment construction nationwide is another Texas powerhouse — the Austin metro area. Despite a 5.3% slowdown compared to 2024, local developers are expected to deliver 26,715 rental units by the end of the year. Of these, Austin proper accounts for a remarkable 15,195 new apartments. Far behind, the suburb of Manor, TX, is projected to add 2,672 units, while San Marcos, TX, is estimated to see 1,612 new rentals come online.

And, Texas continues to make a strong showing in new apartment construction with the Houston metro area ranking eighth nationwide for new apartment completions in 2025. More precisely, a total of 14,439 units are expected to open across the metro, despite a steep 37.6% drop in deliveries compared to the previous year. This significant slowdown is part of a wider trend seen across major Texas metros, in which builders are pulling back after several years of historic growth.

Leading the charge in this metro area is Houston proper, which is set to welcome the bulk of those new apartments (7,770 units, to be exact). Trailing behind are Cypress, TX, with an estimated 1,343 apartments, and the suburb of Spring, TX, with 1,109 units.

Similarly, the San Antonio metro area also secured a spot in the top 20 U.S. metros for apartment construction in 2025, coming in at #17. Although the ranking comes in the wake of a 28.7% year-over-year decline in deliveries, a total of 8,070 new units are nevertheless projected across the metro. The city of San Antonio is expected to receive the majority of them (5,921 units), while the remainder is split between nearby New Braunfels, TX (946 units) and Seguin, TX (400 units).

Meanwhile, 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, FL, follows with 1,672 new rentals, while Hollywood, FL, is set to deliver 1,535 units.

Click on each tab to see the number of new apartments set for completion by the end of 2025 in various metros across the U.S.:

Among all cities analyzed, Austin ranks 1st in expected completions

New York may dominate new apartment construction at the metro level, but what happens when we take a closer look at individual cities?

At the city level, the landscape shifts dramatically, yet Southern locations dominate the rankings: In 2025, four Texas cities are projected to deliver nearly half of the 78,350 new apartments expected across the nation’s top 10 cities for apartment construction, with Austin leading the way at 15,195 units.

The city’s rapid population growth — fueled by Austin’s status as a thriving tech hub — has played a key role in this construction surge. From 2020 to 2024, Austin’s population grew by 10.9%, making it the fastest-growing large metro in the U.S. Naturally, this steady influx of newcomers — particularly young professionals, tech workers and people moving from other states — has created intense demand for apartments.

In response, developers moved quickly, launching a record number of developments between 2021 and 2023. With typical construction timelines ranging from 18 to 36 months, that earlier wave of development is now coming to fruition — resulting in Austin’s record-breaking apartment completions in 2025.

Further showcasing Texas’ strong presence in the rankings, Houston claims third place in the rankings at the city level with 7,770 brand-new apartments set for completion this year.

The Lone Star State’s streak in apartment construction at the city level continues with San Antonio in seventh place (5,921 estimated units) and Dallas in ninth (5,778 units).

In addition to these Texas heavy builders, Fort Worth, TX, completes the top 20 with 3,793 new apartments on track to open before the end of the year. Notably, the city has grown by nearly 10% since 2020, reaching 1 million residents in 2024. This growth has been fueled by the booming Metroplex economy, domestic migration, and a strong demand for affordable housing, especially among young professionals and families in search of better opportunities.

Sunbelt cities power ahead as economic engines (& World Cup buzz) spark new apartment construction

Coming in second at the city level is Charlotte, NC, with 12,365 new units expected to be delivered in 2025 — further reinforcing the South’s dominance in this year’s new apartment developments.

Charlotte’s population growth has been fueled by an ongoing influx of young professionals, families and remote workers, all drawn by a diverse economy and affordable cost of living. Plus, the city has shown sustained strength in finance, technology, and healthcare, making it an attractive destination for both residents and businesses.

Then, after Brooklyn, NY, in fourth place (7,189 units), Phoenix stands out with 6,409 new apartments to be delivered, earning it fifth place in the ranking. Here, major investments in semiconductor, battery and tech manufacturing (along with the expansion of fintech and healthcare) continue to attract businesses and new residents alike, thereby supporting demand for rental housing. Additionally, in recent years, Phoenix expanded its “Missing Middle” and attainable housing initiatives, streamlining some zoning processes and encouraging developers to build more.

Coming in sixth place is Atlanta, which is expected to introduce 6,359 brand-new apartments to its rental market. In particular, projects like the Atlanta BeltLine (a multiuse trail sparking mixed-use development); downtown revitalization efforts spurred partly by investments tied to the 2026 FIFA World Cup; and the transformation of Midtown into a live/work/play hub fueled demand for apartments — especially among Millennial and Gen Z renters.

Smaller metros, big gains: Where has new apartment construction increased the most since last year?

While large metros continue to command attention for their sheer volume of new apartments, some of the most dramatic year-over-year increases in 2025 are seen in smaller and mid-sized metros — primarily those offering livability and affordability for renters.

Leading the top 20 metros for apartment growth is Naples, FL, where completions grew by a staggering 275% since 2024. It’s worth noting here that this coastal metro (long known for its affluent retirees and resort living) is shifting toward broader housing diversity as population growth spills over from other parts of Florida. Accordingly, developers are responding to growing demand from remote workers, service-sector employees, and younger transplants priced out of Miami and Tampa, FL.

In second place, Birmingham, AL, metro is estimated to nearly triple the apartment deliveries it recorded in 2024, accounting for a 198.1% increase. In this case, this upswing is closely tied to revitalization efforts downtown, improved business incentives, and increased migration from nearby Southern states. At the same time, Birmingham’s relatively low cost of living and emerging tech and startup scene are attracting Millennials and Gen Z renters, thus breathing new life into the city’s rental landscape.

In the same way, as southern California continues to grapple with housing shortages, Riverside — the core of the Inland Empire — has ramped up on apartment construction with more than 6,000 units set for completion in 2025. That’s a 154.1% increase from last year, placing the metro at #3 on our list. This substantial growth is largely fueled by an ongoing influx of new residents, mostly moving in from Los Angeles and Orange County, drawn by the Inland Empire’s more affordable housing options.

Coming in fourth is Lincoln, NE, where apartment construction has more than doubled year-over-year (up 107.4%), driven by a growing job market. A hub for education, health care, and insurance, Lincoln’s compact urban core is experiencing a surge in infill projects designed to meet the lifestyle needs of students and young professionals alike.

To the north, Sioux Falls, SD, joins the ranks of high-growth metros with a clean 100% increase in apartment deliveries compared to last year. The surge reflects the area’s strong economy (anchored by banking, biotech and health care) and its growing appeal for renters seeking affordability and quality of life.

Chicago sees the steepest drop in new apartment construction in 1 year

A closer look at the data reveals a group of metros with significantly fewer apartments estimated to open this year compared to 2024. In many cases, this pullback is tied to a mix of higher construction costs, tighter lending standards, or the cooling of post-pandemic building booms.

First, Chicago — where it’s already incredibly tough to secure an apartment — tops the list with the largest drop in new construction, falling by a staggering 60.4% to 3,756 units compared to 2024. Many new apartments on track to open across the metro were permitted in 2021–2022 with far fewer projects breaking ground in 2023-2024. At the same time, local developers are navigating a mix of high labor and material costs, as well as rising insurance premiums — seriously dampening new construction.

Likewise, after a strong run of apartments added in recent years, new construction in Madison, WI (#2 on this list) plummeted by 59.3%, with just 1,664 units expected to open in 2025. The metro remains popular with college students and young professionals, but higher interest rates and a wave of high-end apartments appear to be slowing new projects.

Further west, more than 5,600 new apartments are still expected to open in the Twin Cities this year. Even so, that’s a big drop of 56.5% compared to 2024, placing the metro at #3 on our list. After a few years with lots of apartments opened, the local market appears to be cooling off. Now, developers are being more careful because apartments are filling up more slowly, so they’re offering more move-in deals. New rules like possible rent control are also creating uncertainty.

Similarly, new apartment construction in the Portland, OR, metro area (#4) has dropped by half compared to last year. Here again, the metro is seeing more gradual population growth, changes in what renters want and higher building costs. Although almost 3,900 new apartments are still on track to open this year, that’s a big slowdown from 2024.

Finally, development is down more than 50% to 4,175 units in the San Francisco Bay Area, reflecting ongoing affordability challenges and remote work shifts across the metro coupled with a tight lending environment. While key urban hubs like Oakland and Berkeley are still adding new apartments, construction in the Bay Area has tempered significantly compared to last year.

Methodology

RentCafe.com is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the U.S.

To compile this report, RentCafe’s research team analyzed new apartment construction data across 369 U.S. metropolitan statistical areas. The study is exclusively based on apartment data related to buildings containing 50 or more units. Metros with fewer than 300 units or fewer than two properties/buildings were only included in the totals, not in the rankings.

The Bronx and Staten Island were not included in the New York metro data set.

Apartment data was provided by our sister company Yardi, a business development and asset management tool for brokers, sponsors, banks, and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors.

Apartment projections at the metro and city level for 2025 were calculated based on a Yardi proprietary algorithm that includes confirmed and likely completions for 2025 based on the issuance of a certificate of occupancy. After the certificate of occupancy is issued, the status of the property can be considered “completed.”

Apartment projections are estimates and subject to change. Actual apartment completion dates depend upon a variety of factors and may change.

Data on estimated population by metro area was according to the U.S. Census Bureau.

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