The volume of housing construction in the US has increased, and a handful of familiar markets are making up the bulk of the activity. But Phoenix has the largest multi-family product under construction to complete within the coming year, with nearly 20,100 units slated to complete over the next 12 months. That makes up the majority of the almost 28,600 units currently under construction, which will increase the existing base by a remarkable 7.6%. Phoenix has also been a major competitor over the past decade, with 57,100 units completed, adding 18.2% to the existing base. ALSO READ: Lincoln Ventures Brings 24-Story Moontower to Downtown Phoenix In Q2 2021, over 623,500 units were under construction in the 150 largest U.S. housing markets. This is the 11th consecutive quarter of residential construction activity of over 600,000 units. The most recent construction number cannot quite approach the 690,000 units that were built a little more than a year ago in 1. The units currently under construction in the USA lead to short-term inventory growth – within the next 18 months or so – of 3.4 %. In the coming year alone, inventory growth is expected to be 2.2%, slightly above the previous year’s figure. Much of this increased construction activity is concentrated in a handful of major housing markets. Only 13 stores nationwide make up almost half of the current apartments. Each of these 13 stores has more than 15,000 units under construction. The housing markets on this list of leading construction companies are well known as some of the areas with large blocs of products have consistently topped the nation in supplies for the past several years. In fact, the list of markets with more than 15,000 units in circulation in mid-2021 reads almost the same as last year’s list. Unsurprisingly, property managers operate in regions and markets where growing populations have required more housing and a diverse, healthy economy keeps investors and developers confident in the rental potential. In addition to gateway markets, which often take up large amounts of new supply, several markets in Texas and Sun Belt are on the list, where some suburban nodes are growing almost as fast as urban cores. As of Q2 2021, Washington, DC, is the country’s site manager with nearly 29,500 units under construction. This market has already become a new leader in recent years, with local inventory increasing by more than 20% over the past decade. The inventory should increase the inventory by a further 4.5%. Los Angeles currently has over 29,300 homes under construction, which will add 2.6% to the existing base. Over 67,000 units have been shipped in Los Angeles in the past decade. While this was one of the largest completion volumes nationwide, the deliveries resulted in a slight 6.8% increase in volume due to the already huge housing base in Los Angeles. In recent years, the new offering has concentrated on the submarkets of Downtown Los Angeles, Mid-Wilshire and Burbank / Glendale / Pasadena. In the future, Mid-Wilshire and Downtown Los Angeles will continue to receive most of the activities. Dallas is no stranger to major construction either. In this market, almost 153,400 new apartments have been delivered in the last 10 years, more than in any other market nationwide and the stock has increased by 31.2%. Another 28,600 units are now in the works which will add another 4.4% to inventory. Austin has been one of the fastest growing inventories in the country for the past decade and is still holding its lightning-fast pace today. The more than 27,500 residential units in Austin are set to add 10.4% to the inventory base, one of the fastest rates in the country. Austin shipped nearly 76,600 units over the past 10 years, driving an inventory increase of 40.6%, number 2 behind Charlotte. When measuring future shipments based on inventory growth, only the smaller Huntsville beats Austin, with units under construction expected to add 15.6% to the existing base. Several smaller markets that will increase inventory the most in the short term also led the way on other performance metrics. Huntsville, Boise City, Reno and Fayetteville have been consistently high rental growth markets with steady demand in recent years. Others, like Charleston and Cape Coral, saw strong population growth. A short-term inventory build-up of more than 6% is also planned in five stores with more than 17,000 units under construction. The leading national markets for both data points include Phoenix, Austin, Seattle, Nashville, and Orlando. In the coming year, the strongest construction activity is planned in Austin, where the total stock will grow by 6.9% or more than 18,000 units. To learn more about the data behind this article and what RealPage has to offer, visit https://www.realpage.com/. Sidebar: Another view according to Dodge Data & Analytics. There is a different view of the valley. At the national level, housing starts for commercial and apartment buildings were 10% higher year-on-year over six months. In the top 10 metropolitan areas, commercial and apartment building starts rose 12% in six months, with only three metropolitan areas – Washington DC, Los Angeles CA, and Austin TX – seeing declines. In the second largest group of metropolitan areas (ranks 11-20), launches rose 11% year-over-year, with only Phoenix AZ, Houston TX and Chicago IL losing ground.
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