For the fifth consecutive year, apartment construction has exceeded 300,000 units. Housing developers are set to bring 334,000 new apartments to market this year, despite the economy being stymied by the COVID-19 pandemic, workforce shortages and increased costs for building materials.

Among the epicenters of the current boom, according to RENTCafé’s Apartment Construction Report, is Charlotte, N.C., which is experiencing a 100 percent increase in apartment construction, with projections showing 10,723 new apartments hitting the market this year. Another southeastern area putting up big numbers is Orlando, Fla., with a 78 percent growth forecast for about 8,211 new units.

What’s more, eight of the top 20 metro areas for apartment construction are expected to hit a five-year high during 2021, including newcomers Kansas City, Mo., and Raleigh, N.C. Consider that last year 13 of the top 20 metros recorded decreases in apartment construction, while that is true of only six to the top 20 cities this year.

The 2021 torchbearer of apartment construction for the fourth year in a row: The Dallas-Fort Worth metro area, with 21,173 new units in the pipeline and expected to be available on the market by year end. New York City has returned to its pre-
pandemic levels with 19,375 projected units, about an 11 percent increase compared with 2020.

Phoenix, one of the country’s fastest-growing cities, took the No. 3 spot nationally, adding 15,846 units this year, a whopping 76 percent rise compared with 2020.

“Lack of entry-level housing supply and rising home prices will show the multifamily rental market demand increasing as new renters enter the market and millennials extend their rental commitments,” said Doug Ressler, manager of business intelligence at Yardi Matrix.

Mike Consol (m.consol@irei.com) is editor of Real Assets Adviser. Follow him on Twitter @mikeconsol to read his latest postings.