U.S. cities are buzzing with new apartment buildings — more than we’ve seen in decades. So, if you’ve noticed more cranes against your city’s skyline recently, you’re not alone. In fact, this boom is turning certain neighborhoods into hotspots for new apartments, attracting mostly young, high-earning folks chasing the dream of urban apartment living.
With that in mind, we took a closer look at this trend in the 50 largest cities to see which neighborhoods have benefited the most from new apartment construction recently. Specifically, by using data from Yardi Matrix, we uncovered the top zip codes where this exciting development has been happening for the last five years.
What we found was that living in a brand-new apartment surrounded by all of the conveniences of city life has become a reality for many as a whopping 1.2 million new rental units have popped up in cities across the country since 2018.
This surge not only means more options for renters, but also potentially better deals, as well as living spaces equipped with modern amenities and designs. Plus, with so many choices in prime city-center locations, the perfect apartment is within reach.
Washington, DC’s 20002 is leading the trend with 7,378 new rentals opened in the last five years. But, for the ultimate in apartment construction boom, set your sights on Miami’s 33132, where the number of new apartments has quadrupled since 2018.
Washington, DC is the poster child for apartment construction, with 2 zip codes leading the way
Washington, D.C. dominates our top five with two zip codes — 20002 and 20003 — taking first and second places, respectively. These two neighborhoods are testimony to the city’s rising popularity with more than 14,000 total apartments built in the last five years. Moreover, after bleeding residents as a result of the pandemic, Washington, D.C. is bouncing back: The nation’s capital welcoming around 3,000 new residents in 2022 alone.
Meanwhile, the Dallas-Fort Worth metro area has the highest number of zip codes (8) among the top 50 list by number of new units. The next-highest-ranked is the Austin, Texas, metro with five zip codes, followed by Chicago, IL with four.
#1. Zip Code 20002, Washington, DC
- New apartments in 5 years: 7,378
- Increase in apartments: 73.1%
- Zip median income: $79,470
- Zip median age: 33.5
Encompassing the dynamic H Street Corridor, zip 20002 is the dream spot for renters in Washington. Accordingly, in the last five years, interest in this neighborhood (due to its proximity to the power hubs of the nation’s capital and vibrant nightlife) led to 7,378 new apartments entering the market.
One aspect that zip 20002 does not lack is available land, making it the right candidate for developers. And, as the heart of political, cultural and social scenes, the 20002 zip code has evolved into a premier destination for urban-dwellers seeking a blend of historic significance and contemporary living.
#2. Zip Code 20003, Washington, DC
- New apartments in 5 years: 7,225
- Increase in apartments: 122.2%
- Zip median income: $115,750
- Zip median age: 34.5
Another coveted D.C. area, zip 20003, more than doubled its number of rental units by adding 7,225 apartments between 2018 and 2022. Plus, with a median household income of $116,000, it comes as no surprise that the area is fertile ground for high-end rentals.
Here, the majority of newly built apartments (91%) are in top locations, which is perfect for renters who want to experience a lively community with a diverse range of shops, restaurants and entertainment options.
#3. Zip Code 11101, Queens, NY
- New apartments in 5 years: 7,081
- Increase in apartments: 73.5%
- Zip median income: $87,264
- Zip median age: 34
Why is this Long Island City neighborhood seeing a surge in demand among renters? In this case, it might be its easy access to Manhattan combined with the mix of both luxury and affordable housing. More precisely, with 7,081 rentals built in the last five years, zip 11101 seems to have something for every renter’s budget.
Additionally, this growth can also be attributed to the area’s strategic location along the East River, which offers spectacular views of the Manhattan skyline and its burgeoning arts and cultural scenes.
#4. Zip Code 37203, Nashville, TN
- New apartments in 5 years: 6,806
- Increase in apartments: 96.6%
- Zip median income: $52,083
- Zip median age: 31.5
You can’t get any closer to the heart of Nashville than zip code 37203. And, with a whopping 6,806 new units built in the past five years, the rental options in this zip code have nearly doubled.
Home to several universities and medical centers, the area attracts a younger demographic than that of the metro area — which, in turn, fuels the demand for rental properties. Thus, this region (which encompasses parts of the vibrant Music Row and the Gulch) is a sought-after destination for those eager to be at the heart of the city’s cultural and musical evolution.
#5. Zip Code 75034, Frisco, TX
- New apartments in 5 years: 5,872
- Increase in apartments: 69.5%
- Zip median income: $65,816
- Zip median age: 35.6
An impressive number of major corporations call Frisco, TX, home, including T-Mobile, Oracle and Amazon. This, along with a highly rated school system, makes the city attractive for everyone from young professionals to families with children.
Located in the western part of the city, zip code 75034 became ground zero for 5,872 new apartments between 2018 and 2022. A popular choice for commuters, this area is known for its upscale neighborhoods. As a matter of fact, 96% of the units built in the last five years here are high-end rentals.
Trending zip codes: 4 zip codes across the U.S. triple their share of new apartments
Many of the neighborhoods that witnessed a construction boom in the last five years are in or around city centers. Consequently, the revitalization attempts in these areas resulted in all of the 50 zip codes on our list more than doubling their inventories during this time period.
First up, zip code 33132 is leading the pack with a record 354% increase. Not to be outdone, an additional three zip codes also went full throttle, increasing their rental roster by more than 200%. Moreover, our study showed that high-end apartments were the most common in all of the trendiest zip codes for new construction.
Zooming out, on a metro level, Austin, TX, Phoenix, AZ and Miami, FL stand out with four zip codes each in our top.
#1. Zip Code 33132, Miami, FL
Miami is home to the top-trending zip code for apartment construction — 33132. Here, the Midtown neighborhood had only 1,182 rentals at the end of 2017. However, in a five-year period, construction picked up the pace, adding 4,184 new apartments.
The impressive increase of 354% is the result of a combination of a great location, waterfront access and a variety of housing options. Home to several major financial institutions and tech companies, the neighborhood is situated along Biscayne Bay and an attractive spot for young professionals. Accordingly, the median age of residents in the area is significantly lower than the metropolitan median (34.6, compared to 41.4).
#2. Zip Code 32751, Maitland, FL
An area with a suburban vibe, zip code 32751 is still within close proximity of larger cities, like Orlando and Winter Park, thereby offering its residents access to big-city amenities. And, it seems as though both renters and developers are discovering that you can get the best of both worlds in this Maitland neighborhood as the number of apartments went up from 677 to 2,529 for a 274% increase between 2018 and 2022.
In this case, this staggering growth might be attributed to Maitland’s rich cultural heritage, scenic lake views and diverse housing choices. At the same time, as a hub for various corporate headquarters and renowned educational institutions, this area nestled in central Florida appeals to both families and rising professionals.
#3. Zip Code 23230, Richmond, VA
Richmond’s 23230 zip code (situated in Henrico County, VA) has emerged as a residential hotspot with an outstanding 235% surge in new apartment construction. That’s because, in the last five years, 2,586 rental units have been added from a base of 1,100. The area’s strategic location may have contributed to its growth, making commuting to work or accessing other parts of the city seamless. Additionally, the rise in housing options here speaks to its appeal to people who value convenience and connectivity.
#4. Zip Code 27526, Fuquay Varina, NC
Little-known Fuquay Varina, NC, has one of the most active zip codes for apartment construction in the country with 27526. This North Carolina gem ranks fourth on our list, showcasing a robust growth rate of 216% in rental apartments.
Specifically, within the span of five years, the momentum in construction led to the addition of 1,218 new apartments. This impressive expansion could be attributed to Fuquay Varina’s blend of historic charm and modern amenities, making it an ideal residential spot. Furthermore, as a rapidly growing town attracting businesses and young families alike, the area has become a focal point for those seeking both community and convenience. The median age here also indicates a dynamic mix of both established residents and newcomers.
#5. Zip Code 32405, Panama City, FL
Panama City is home to one of the fastest-growing zip codes for apartment development — 32405. Coming in fifth on our list, this area — which extends from Highland City to Pretty Bayou — recorded a remarkable 190% surge in construction.
Notably, as of a few years ago, the local rental inventory was relatively modest. Yet, from 2018 to 2022, the increased construction resulted in the addition of 1,870 new apartments. This can be explained by the zip’s prime location, proximity to the city center and natural beauty of its surroundings. Now, as the city evolves, 32405 has transformed into a preferred choice for renters looking for a mix of a warm climate and modern amenities.
- RentCafe is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States.
- To compile this report, RentCafe’s research team analyzed new completed apartments data across 142 U.S. metropolitan statistical areas, containing 917 zip codes.
- The study is exclusively based on apartment data related to buildings containing 50 or more units. Zip codes with less than 500 units or less than three properties/buildings were not included.
- Apartment data was provided by our sister company Yardi Matrix, 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.
- To identify the top 50 zip codes for apartment construction, we looked at the number of units completed between 2018 and 2022 for each zip code.
- The trending zip codes are defined as those zip codes with the highest increase in inventory between 2017 and 2022.
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