New York Leads the Way for Expected Apartment Deliveries in 2022

An eye-popping 420,000 new apartments are expected to be delivered across the US by the end of the year as demand for rental units continues to skyrocket amid rising inflation and interest rates.

That’s according to new research from RentCafe, which notes that the last time apartment deliveries went over 400,000 units was in 1972.  The New York metro area is expected to deliver the most apartments with more than 28,000, double the number completed in 2021, while Dallas-Fort Worth, which claimed the #1 spot last year, is expected to develop 23,500 new units. (Dallas has held the top spot for four straight years, according to RentCafe analysts.) 

RentCafe calls the New York estimates “a remarkable comeback for a metro that has been bleeding residents as a direct consequence of the pandemic and subsequent restrictions,” noting that in 2021, the city’s population decreased by 1.6%, or roughly 328,000 people.

Number-three Miami is also expected to stage a comeback with 19,000 new apartments planned for delivery. RentCafe says “the existing supply of rentals simply can’t keep up with sky-high demand,” adding that “developers have plunged into a building frenzy that’s set to culminate in record-breaking numbers in 2022 compared to the area’s completions in the last few years.”

The Austin area came in at #4 on RentCafe’s list with an estimated 18,288 new units expected to come online before year’s end, the highest number of completions the city has seen in the past five years. The city climbed three positions to squeeze out Houston and land in fourth place.

And half of the top 20 metros ranked by RentCafe are set to reach five-year highs in deliveries this year, including Miami, Austin, Phoenix, Seattle, Nashville and Portland. Nashville is predicted to add 9,620 new apartments by year’s end, while 8,476 new rentals are expected to open in Portland.

While apartment construction is continuing apace, headwinds remain in the form of material and labor shortages, experts say.

 “The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues,” said Doug Ressler, manager of business intelligence at Yardi Matrix.

Multifamily investment totaled $78 billion in Q2, according to CBRE, and the RCA Commercial Property Price Index increased by 24% year over year at the end of last quarter.