Zip Codes With the Most Multifamily Construction

Neighborhoods in cities with lively social scenes, good amenities, and prime locations are reaping the benefits of the flood of new multifamily construction that has come on the market in recent years.

Some 1.2 million new rental units have been delivered since 2018, according to an analysis by RentCafe, and a few zip codes with above-average incomes and younger populations have been the winners by the number of new units added.

Two zip codes in Washington, DC claimed the largest number of new rentals. Zip code 20002, which incorporates the U.S. Capitol and includes the H Street Corridor, saw the most construction in the nation. Its location places it “at the heart of political, cultural and social scenes,” RentCafe noted. Median income is $79,460 and the median age of 33.5 years has additional appeal for young renters. Land available made it a good candidate for development: the 7,378 units added represented a 73% increase over the five years.

The adjoining zip code 20003 came in second nationally. It includes Capitol Hill and Capitol Riverfront and has a median household income of $116,000 and median age of 34.5. High-end rentals made up many of the 7,225 units added — a 122% increase during the period. Zip code 11101 in Queens, NY, followed in third place. Its location on the East River offers exceptional views of the Manhattan skyline and arts and cultural scenes, adding to its appeal, RentCafe noted. Some 7,000 new apartments have been added in five years, a 73.5% increase. Its population, with a median income of $87,264, has a median age of 34.

The Gulch/West End zip code 37203 in Nashville ranked fourth. It saw 6,806 new apartments added in the period, virtually double the previous total. Its location near much of the cultural and musical action as well as universities, colleges and medical centers, attracted the 31.5-year-old age group, and median income was $52,083.

Frisco, TX zip code 75034 took fifth place. The area, which RentCafe points out houses some major corporations and a highly rated school system, making it attractive for young professionals and families with children. Median income stood at $65,816 and the median age was 35.6. The number of apartments rose 70% to 5,872, virtually all high-end rentals. Though all of the 50 zip codes RentCafe analyzed more than doubled their multifamily inventories in the period, four stood out for their percentage increase – three in Florida. Zip code 33132 in Miami enjoyed a 354% boost – “a combination of a great location, waterfront access, and a variety of housing options,” RentCafe said. Zip code 32751 in Maitland, which is part of the greater Orlando area, raised its apartment output by 274% to put it in second place, while Panama City, zip code 32405, came fifth with a 190% increase.

Virginia zip code 23230, which includes Richmond, ranked third, rising 235% from a base of 1,100 rental units. A 216% apartment growth in zip code 27526, Fuquay Varina, NC, helped it to fourth place.

“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,” RentCafe commented.