{"id":127455,"date":"2025-08-20T00:05:21","date_gmt":"2025-08-20T07:05:21","guid":{"rendered":"https:\/\/www.rentcafe.com\/blog\/?p=127455"},"modified":"2025-10-29T08:26:45","modified_gmt":"2025-10-29T15:26:45","slug":"new-apartment-construction","status":"publish","type":"post","link":"https:\/\/www.rentcafe.com\/blog\/rental-market\/market-snapshots\/new-apartment-construction\/","title":{"rendered":"New apartment construction tops 500K units this year, more than half in 1 region"},"content":{"rendered":"<p>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.<\/p>\n<p>While this number is lower than the <a href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/market-snapshots\/apartment-construction-2024\/\">record-breaking new apartment developments<\/a>\u00a0seen 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 <a href=\"https:\/\/www.rentcafe.com\/\">rental apartments<\/a>.<\/p>\n<div style=\"background-color: #ddf2f0; padding: 20px; border-radius: 5px;\">\n<p><strong><strong> Key takeaways: <\/strong><\/strong><\/p>\n<ul style=\"margin: 0; line-height: 1.6;\">\n<li>U.S. new apartment construction remains strong in 2025 with more than 500,000 units expected this year. That&#8217;s below last year&#8217;s numbers but still higher than annual averages since 2015.<\/li>\n<li>Driven by growing population, more than 50% of this year\u2019s new apartment developments are concentrated in the South.<\/li>\n<li>Thriving Texas metros \u2014 like Dallas, Austin and Houston \u2014 are leading the apartment-building boom in the region.<\/li>\n<li>New York metro leads again in apartment deliveries, edging out Dallas by 1,000+ units \u2014 yet, it&#8217;s Austin, TX that steals the spotlight at the city level.<\/li>\n<li>Naples, FL, almost quadruples its apartment completions in one year, while Chicagoland sees the steepest drop in deliveries (-60.4%).<\/li>\n<\/ul>\n<\/div>\n<div style=\"margin-bottom: 20px;\"><\/div>\n<p>Interestingly, the South is estimated to welcome more than half of all new apartment developments built nationwide this year \u2014 likely due to the region\u2019s status as a \u201c<a href=\"https:\/\/www.storagecafe.com\/blog\/state-to-state-moving-trends\/\">migration magnet<\/a>\u201d supported by job growth and economic expansion in the last decade.<\/p>\n<p>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 <span style=\"color: #000000;\"><em>\u201c<\/em><\/span>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,<span style=\"color: #000000;\"><em>\u201d<\/em><\/span> said Doug Ressler, senior analyst &amp; manager of business intelligence at Yardi Matrix.<\/p>\n<p style=\"text-align: right;\"><span style=\"color: #666699;\"><em><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-134715 size-thumbnail\" src=\"https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2024\/07\/Doug-Ressler_headshot.png?w=150&amp;h=150&amp;crop=1\" alt=\"Doug Ressler, Senior Analyst &amp; Manager of Business Intelligence, Yardi Matrix\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2024\/07\/Doug-Ressler_headshot.png?resize=150,150 150w, https:\/\/www.rentcafe.com\/blog\/wp-content\/uploads\/sites\/62\/2024\/07\/Doug-Ressler_headshot.png?resize=96,96 96w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/>\u201cSouthern 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 \u2014 fueling demand for rental housing.\u201d<\/em><\/span><\/p>\n<p style=\"text-align: right;\"><span style=\"color: #666699;\"><em><strong>Doug Ressler<\/strong><br \/>\nSenior Analyst &amp; Manager of Business Intelligence, Yardi Matrix<\/em><\/span><\/p>\n<p>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\u2019s boroughs, especially Brooklyn and Manhattan.<\/p>\n<p><iframe id=\"datawrapper-chart-lCRQm\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"U.S. New Apartment Deliveries by Year\" src=\"https:\/\/datawrapper.dwcdn.net\/lCRQm\/2\/\" height=\"465\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Column Chart\" data-external=\"1\"><\/iframe><\/p>\n<h2>More apartments are coming to the South than in any other U.S. region, despite headwinds<\/h2>\n<p>Fueled by the <a href=\"https:\/\/www.storagecafe.com\/blog\/state-to-state-moving-trends\/\">Sunbelt Boom<\/a>, renters in the South will benefit from an estimated 265,613 brand-new apartments before the end of December. That\u2019s a whopping 52.5% of all new apartments set to open nationwide this year, highlighting the region&#8217;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.<\/p>\n<p>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\u2019s fastest <a href=\"https:\/\/www.thepolicycircle.org\/minibrief\/migration-between-states\/\">population growth rates<\/a> from 2020 to 2021.<\/p>\n<p><a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/tx\/\">Texas<\/a> and <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/fl\/\">Florida<\/a>, 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.<\/p>\n<p>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 <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/ca\/\">California<\/a> with an anticipated 40,110 new apartments and <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/az\/\">Arizona<\/a> with 22,067.<\/p>\n<p>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, <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/oh\/\">Ohio<\/a> is the region\u2019s busiest builder with an estimated 9,958 new apartments to be opened by year-end, followed by <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/in\/\">Indiana<\/a> with 7,962 anticipated units.<\/p>\n<p>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).<\/p>\n<div id=\"datawrapper-vis-QPEiy\" style=\"min-height: 567px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/QPEiy\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-QPEiy\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/QPEiy\/full.png\" alt=\"Top 20 U.S. Metros for New Apartments in 2025 (Choropleth map)\" \/><\/noscript><\/div>\n<div style=\"margin-bottom: 20px;\"><\/div>\n<h2>New York metro tops new apartment construction again, outpacing Dallas by 1,000+ units<\/h2>\n<p><strong>For the fourth consecutive year, the New York metro area leads the nation with 30,023 new apartments set to open in 2025<\/strong>, down 8.4% since the previous year. Even so, it&#8217;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.<\/p>\n<p>This growing disparity highlights New York\u2019s <a href=\"https:\/\/thenyhc.org\/wp-content\/uploads\/2025\/04\/NYHC-Tracker-2025-Apr2025.pdf\">sustained momentum<\/a> in new apartment developments, driven by robust demand, ongoing investment and large-scale projects.<\/p>\n<p>Unsurprisingly, nearly half of the new apartments in the New York metro (14,481 units) are set to open in just three <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/new-york-city-ny\/\">New York City<\/a> boroughs. Leading the way is <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/brooklyn-ny\/\">Brooklyn<\/a>, with 7,189 new units expected by year\u2019s end. Then, trailing at a considerable distance is <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/manhattan-ny\/\">Manhattan<\/a>, where renters will benefit from 4,662 brand-new apartments this year, followed by <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/queens-ny\/\">Queens<\/a> with 2,630 new rentals.<\/p>\n<p>And, across the river in <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/nj\/\">New Jersey<\/a>, developers are on track to complete 1,392 apartments in <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/newark-nj\/\">Newark<\/a>.<\/p>\n<p><strong>The Dallas metro area comes in second among the nation\u2019s top metros for new apartment construction in 2025.<\/strong> Here, 28,958 new apartments are expected to open before the end of the year. That\u2019s a significant 22.4% decrease in completions compared to 2024.<\/p>\n<p>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 <a href=\"https:\/\/www.dallaschamber.org\/wp-content\/uploads\/2025\/03\/EDG2025-Talent-MigrationAll.pdf\">moving to the area<\/a>, the demand for housing remains high.<\/p>\n<p>For example, with 5,778 brand-new apartments on track to open this year, the city of Dallas is the metro\u2019s busiest builder, followed by Fort Worth, TX, with 3,793 expected units. Not to be outdone, McKinney, TX \u2014 which tops the list of <a href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/market-snapshots\/best-cities-for-renters\/\">best cities for renters in 2025<\/a> \u2014 is set to welcome 2,006 fresh apartments before the end of December.<\/p>\n<p><strong>Taking third place in new apartment construction nationwide is another Texas powerhouse \u2014 the Austin metro area.<\/strong> 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 <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/manor-tx\/\">Manor, TX<\/a>, is projected to add 2,672 units, while <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/san-marcos-tx\/\">San Marcos, TX<\/a>, is estimated to see 1,612 new rentals come online.<\/p>\n<div id=\"datawrapper-vis-bcb62\" style=\"min-height: 697px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/bcb62\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-bcb62\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/bcb62\/full.png\" alt=\"Top 20 U.S. Metros for New Apartments in 2025 (Table)\" \/><\/noscript><\/div>\n<p>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.<\/p>\n<p>Leading the charge in this metro area is <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/houston-tx\/\">Houston<\/a> proper, which is set to welcome the bulk of those new apartments (7,770 units, to be exact). Trailing behind are <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/cypress-tx\/\">Cypress, TX<\/a>, with an estimated 1,343 apartments, and the suburb of <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/spring-tx\/\">Spring, TX<\/a>, with 1,109 units.<\/p>\n<p>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 <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/san-antonio-tx\/\">San Antonio<\/a> is expected to receive the majority of them (5,921 units), while the remainder is split between nearby <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/new-braunfels-tx\/\">New Braunfels, TX<\/a> (946 units) and <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/seguin-tx\/\">Seguin, TX<\/a> (400 units).<\/p>\n<p>Meanwhile, Miami \u2014 the nation\u2019s <a href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/rental-competitiveness-index\/us-hottest-rental-markets\/\">hottest rental market<\/a> \u2014 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. <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/miami-fl\/\">Miami<\/a> proper will see the largest share of new supply, with 5,301 units expected. <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/fort-lauderdale-fl\/\">Fort Lauderdale, FL<\/a>, follows with 1,672 new rentals, while <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/hollywood-fl\/\">Hollywood, FL<\/a>, is set to deliver 1,535 units.<\/p>\n<p><em>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.:<\/em><\/p>\n<div id=\"datawrapper-vis-wjuHV\" style=\"min-height: 601px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/wjuHV\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-wjuHV\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/wjuHV\/full.png\" alt=\"New York Metro: Top Cities for New Apartments in 2025 (Bar Chart)\" \/><\/noscript><\/div>\n<h2>Among all cities analyzed, Austin ranks 1st in expected completions<\/h2>\n<p>New York may dominate new apartment construction at the metro level, but what happens when we take a closer look at individual cities?<\/p>\n<p>At the city level, the landscape shifts dramatically, yet Southern locations dominate the rankings:<strong>\u00a0In 2025, four Texas cities are projected to deliver nearly half of the 78,350 new apartments expected across the nation\u2019s top 10 cities for apartment construction, with Austin leading the way at 15,195 units.<\/strong><\/p>\n<p>The city&#8217;s rapid population growth \u2014 fueled by Austin\u2019s status as a thriving tech hub \u2014 has played a key role in this construction surge. From 2020 to 2024, Austin\u2019s population <a href=\"https:\/\/www.texas-demographics.com\/cities_by_population\">grew<\/a> by 10.9%, making it the fastest-growing large metro in the U.S. Naturally, this steady influx of newcomers \u2014 particularly young professionals, tech workers and people moving from other states \u2014 has created intense demand for apartments.<\/p>\n<p>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 \u2014 resulting in Austin\u2019s record-breaking apartment completions in 2025.<\/p>\n<div id=\"datawrapper-vis-KC72a\" style=\"min-height: 898px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/KC72a\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-KC72a\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/KC72a\/full.png\" alt=\"Top 20 U.S. Cities for New Apartments in 2025 (Table)\" \/><\/noscript><\/div>\n<div style=\"margin-bottom: 20px;\"><\/div>\n<p>Further showcasing Texas\u2019 strong presence in the rankings,<strong> Houston claims third place in the rankings at the city level with 7,770 brand-new apartments set for completion this year<\/strong>.<\/p>\n<p>The Lone Star State\u2019s 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).<\/p>\n<p>In addition to these Texas heavy builders, <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/fort-worth-tx\/\">Fort Worth, TX<\/a>, 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 <a href=\"https:\/\/fortworth.culturemap.com\/news\/city-life\/fort-worth-population-million-census\/\">1 million residents<\/a> 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.<\/p>\n<h2>Sunbelt cities power ahead as economic engines (&amp; World Cup buzz) spark new apartment construction<\/h2>\n<p><strong>Coming in second at the city level is <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/charlotte-nc\/\">Charlotte, NC<\/a>, with 12,365 new units expected to be delivered in 2025 \u2014 further reinforcing the South\u2019s dominance in this year\u2019s new apartment developments.<\/strong><\/p>\n<p>Charlotte\u2019s <a href=\"https:\/\/nchstats.com\/charlotte-population\/\">population growth<\/a> has been fueled by an ongoing influx of young professionals, families and remote workers, all drawn by a diverse economy and affordable <a href=\"https:\/\/www.rentcafe.com\/cost-of-living-calculator\/us\/nc\/charlotte\/\">cost of living<\/a>. Plus, the city has shown sustained strength in finance, technology, and healthcare, making it an attractive destination for both residents and businesses.<\/p>\n<p>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 <a href=\"https:\/\/www.manufacturingdive.com\/news\/arizona-semiconductor-hub-intel-tsmc\/724935\/\">semiconductor<\/a>, 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 <a href=\"https:\/\/canyonbd.com\/residential-construction-is-transforming-arizonas-housing-market\/\">expanded<\/a> its \u201cMissing Middle\u201d and attainable housing initiatives, streamlining some zoning processes and encouraging developers to build more.<\/p>\n<p>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 <a href=\"https:\/\/www.fox5atlanta.com\/news\/atlanta-beltline-greenlights-242m-budget-accelerate-trail-completion-before-world-cup\">Atlanta BeltLine<\/a> (a multiuse trail sparking mixed-use development); downtown revitalization efforts spurred partly by investments tied to the <a href=\"https:\/\/www.fifa.com\/en\/tournaments\/mens\/worldcup\/canadamexicousa2026\/articles\/atlanta-host-eight-matches-usa-stadium\">2026 FIFA World Cup<\/a>; and the transformation of Midtown into a <a href=\"https:\/\/www.atlantarealestateforum.com\/atlanta-ranks-6th-for-live-work-play-developments\/\">live\/work\/play hub<\/a> fueled demand for apartments \u2014 especially among <a href=\"https:\/\/www.rentcafe.com\/blog\/millennial-statistics\/\">Millennial<\/a> and <a href=\"https:\/\/www.rentcafe.com\/blog\/gen-z-statistics\/\">Gen Z<\/a> renters.<\/p>\n<h2>Smaller metros, big gains: Where has new apartment construction increased the most since last year?<\/h2>\n<p>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 \u2014 primarily those offering livability and affordability for renters.<\/p>\n<p><strong>Leading the top 20 metros for apartment growth is <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/naples-fl\/\">Naples, FL<\/a>, where completions grew by a staggering 275% since 2024.<\/strong> It&#8217;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 <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/fl\/\">Florida<\/a>. Accordingly, developers are responding to growing demand from remote workers, service-sector employees, and younger transplants priced out of Miami and <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/tampa-fl\/\">Tampa, FL<\/a>.<\/p>\n<p>In second place, <strong><a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/birmingham-al\/\">Birmingham, AL<\/a>, metro is estimated to nearly triple the apartment deliveries it recorded in 2024, accounting for a 198.1% increase.<\/strong> 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\u2019s relatively low <a href=\"https:\/\/www.rentcafe.com\/cost-of-living-calculator\/us\/al\/birmingham\/\">cost of living<\/a> and <a href=\"https:\/\/www.birminghamtimes.com\/2025\/07\/sloss-tech-2025-organizers-participants-say-event-highlights-alabamas-bright-tech-future\/\">emerging tech and startup scene<\/a> are attracting Millennials and Gen Z renters, thus breathing new life into the city\u2019s rental landscape.<\/p>\n<div id=\"datawrapper-vis-oacJG\" style=\"min-height: 773px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/oacJG\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-oacJG\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/oacJG\/full.png\" alt=\"Top 20 Metros With The Biggest Increase In Apartment Construction 2025 vs. 2024 (Table)\" \/><\/noscript><\/div>\n<div style=\"margin-bottom: 20px;\"><\/div>\n<p>In the same way, as southern California continues to grapple with housing shortages, <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/riverside-ca\/\">Riverside<\/a> \u2014 the core of the Inland Empire \u2014 has ramped up on apartment construction with more than 6,000 units set for completion in 2025. That\u2019s 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 <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/los-angeles-ca\/\">Los Angeles<\/a> and <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/orange-county-ca\/\">Orange County<\/a>, drawn by the Inland Empire\u2019s more affordable housing options.<\/p>\n<p>Coming in fourth is <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/lincoln-ne\/\">Lincoln, NE<\/a>, 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\u2019s compact urban core is experiencing a surge in infill projects designed to meet the lifestyle needs of students and young professionals alike.<\/p>\n<p>To the north, <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/sioux-falls-sd\/\">Sioux Falls, SD<\/a>, joins the ranks of high-growth metros with a clean 100% increase in apartment deliveries compared to last year. The surge reflects the area\u2019s strong economy (anchored by banking, biotech and health care) and its growing appeal for renters seeking affordability and quality of life.<\/p>\n<h2>Chicago sees the steepest drop in new apartment construction in 1 year<\/h2>\n<p>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.<\/p>\n<p>First, <strong>Chicago \u2014 where it\u2019s already <a href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/rental-competitiveness-index\/us-hottest-rental-markets-peak-season-2024\/\">incredibly tough<\/a> to secure an apartment \u2014 tops the list with the largest drop in new construction, falling by a staggering 60.4% to 3,756 units compared to 2024.<\/strong> Many new apartments on track to open across the metro were permitted in 2021\u20132022 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 \u2014 seriously dampening new construction.<\/p>\n<p>Likewise, after a strong run of apartments added in recent years, new construction in <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/madison-wi\/\">Madison, WI<\/a> (#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.<\/p>\n<div id=\"datawrapper-vis-OWqHP\" style=\"min-height: 773px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/OWqHP\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-OWqHP\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/OWqHP\/full.png\" alt=\"Top 20 Metros With The Biggest Decrease In Apartment Construction 2025 vs. 2024 (Table)\" \/><\/noscript><\/div>\n<div style=\"margin-bottom: 20px;\"><\/div>\n<p>Further west, more than 5,600 new apartments are still expected to open in the Twin Cities this year. Even so, that\u2019s 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\u2019re offering more <a href=\"https:\/\/www.rentcafe.com\/blog\/apartment-search-2\/rent-specials-explained\/\">move-in deals<\/a>. New rules like possible <a href=\"https:\/\/www.cbsnews.com\/minnesota\/news\/st-paul-rent-control-ordinance-more-change-coming\/\">rent control<\/a> are also creating uncertainty.<\/p>\n<p>Similarly, new apartment construction in the <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/portland-or\/\">Portland, OR<\/a>, 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\u2019s a big slowdown from 2024.<\/p>\n<p>Finally, development is down more than 50% to 4,175 units in the <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/san-francisco-ca\/\">San Francisco<\/a> Bay Area, reflecting ongoing affordability challenges and remote work shifts across the metro coupled with a tight lending environment. While key urban hubs like <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/oakland-ca\/\">Oakland<\/a> and <a href=\"https:\/\/www.rentcafe.com\/apartments-for-rent\/berkeley-ca\/\">Berkeley<\/a> are still adding new apartments, construction in the Bay Area has tempered significantly compared to last year.<\/p>\n<div style=\"background-color: #edf1f5; padding: 20px; border-radius: 5px;\">\n<h2>FAQs: 2025 New Apartment Construction<\/h2>\n<p><span style=\"font-size: 16px;\"><strong>Q: How many new apartments are expected to open across the U.S. in 2025?<\/strong><br \/>\n<\/span>A: An estimated 506,353 new apartments are projected to open nationwide by the end of the year.<\/p>\n<p><strong>Q: Which U.S. region is expected to welcome the most new apartments this year?<\/strong><br \/>\nA: The South is set to open more than half of all new apartments built nationwide in 2025.<\/p>\n<p><strong>Q: Which metro area will see the most new apartments in 2025?<\/strong><br \/>\nA: The New York metro area leads the nation, with 30,023 new apartments scheduled to open this year.<\/p>\n<p><strong>Q: Which city will see the most new apartments in 2025?<\/strong><br \/>\nA: Austin, TX, tops the list, with 15,195 new apartments slated for completion by year\u2019s end.<\/p>\n<p><strong>Q: Where has new apartment construction increased the most since 2024?<\/strong><br \/>\nA: Naples, FL, has seen the biggest increase, with new apartment construction up 275% since last year.<\/p>\n<p><strong>Q: Where has new apartment construction dropped the most in the past year?<\/strong><br \/>\nA: The Chicago metro area has experienced the steepest decline, with new construction down 60.4% since 2024.<\/p>\n<\/div>\n<h2>Methodology<\/h2>\n<p><a href=\"https:\/\/www.rentcafe.com\/\"><em>RentCafe.com<\/em><\/a><em>\u00a0is a\u00a0nationwide apartment search website\u00a0that enables renters to easily find apartments and houses for rent throughout the U.S.<\/em><\/p>\n<p><em>To compile this report, RentCafe\u2019s 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.<\/em><\/p>\n<p><em>The Bronx and Staten Island were not included in the New York metro data set.<\/em><\/p>\n<p><em>Apartment data was provided by our sister company <a href=\"https:\/\/www.yardi.com\/\">Yardi<\/a><\/em><em>, 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.<\/em><\/p>\n<p><em>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 \u201ccompleted.\u201d<\/em><\/p>\n<p><em>Apartment projections are estimates and subject to change. Actual apartment completion dates depend upon a variety of factors and may change.<\/em><\/p>\n<p><em>Data on estimated population by metro area was according to the\u00a0<\/em><a href=\"https:\/\/www.census.gov\/data\/tables\/time-series\/demo\/popest\/2020s-total-metro-and-micro-statistical-areas.html\"><em>U.S. Census Bureau<\/em><\/a><em>.<\/em><\/p>\n<h3>Fair use and redistribution<\/h3>\n<p>We encourage you and freely grant you permission to reuse, host, or repost the research, graphics, and images presented in this article. When doing so, we ask that you credit our research by linking to\u00a0<a href=\"https:\/\/www.rentcafe.com\/\">RentCafe.com<\/a>\u00a0or this page, so that your readers can learn more about this project, the research behind it and its methodology. For more in-depth, customized data, please contact us at\u00a0<a href=\"mailto:media@rentcafe.com\">media@rentcafe.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u00a0seen last year, it remains significantly higher than the annual totals recorded each year since 2015.&hellip;<\/p>\n","protected":false},"author":757,"featured_media":141951,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3661],"tags":[],"class_list":["post-127455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-snapshots","gallery-content-unit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Apartment Construction Tops 500K Units in 2025<\/title>\n<meta name=\"description\" content=\"More than 500K units are set to open nationwide, mostly in the South. 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