By the end of the year, more than 320,000 new apartments are projected to come on line—a 50 percent increase over 2015, according to a study from RentCafe.
A high demand for new rental apartments is driving a construction boom in cities across the country, such as Philadelphia, Chicago, and New York. This spring, 96.1 percent of the country’s apartments were occupied, even as average rent climbed to a new all-time high of $1,213 in June.
Perhaps surprisingly, the two cities expected to see the highest number of new apartments are Houston and Dallas, Texas. In spite of chilling predictions that Texas’ home markets would take a dive alongside falling energy prices, Houston will see nearly 26,000 new rental units completed this year, with Dallas not far behind at roughly 23,000 units.
Trailing the Texas hubs is New York, with an anticipated 21,000 new apartments, L.A. at 20,000, and Washington, D.C. with roughly 18,000 new rentals.
Studio apartments will make up just 4.7 percent of the country’s new apartments, while one-bedrooms will make up 51 percent—the most popular format for the new rentals.
Source: RentCafe