Despite economic headwinds, the U.S. multifamily sector has achieved a record-breaking year for construction, adding 672,047 units in 2024. As of April, over a million units were still under construction nationwide, with a significant portion concentrated in the top metropolitan areas. This surge in supply, predominantly in upscale Lifestyle properties, is reshaping rental markets across the country.
Key Takeaways
- The U.S. multifamily sector added a record 672,047 units in 2024.
- Over 1 million units remain under construction nationwide as of April.
- Lifestyle properties constitute 80% of the current inventory composition.
- Dallas-Fort Worth leads with the largest under-construction pipeline.
Top Markets for Multifamily Construction
The U.S. multifamily construction pipeline remains robust, with 1,034,611 units underway across 4,774 properties as of April. Yardi Matrix data highlights that the top 30 metros account for nearly 65% of these units, with several exceeding 40,000 units in development. The following metros are leading this construction surge:
- Dallas-Fort Worth: Leads with 60,535 units under construction, 86% of which are Lifestyle properties. The metro has added 156,148 units since 2020.
- New York City: Ranks second with 46,368 units underway, primarily Lifestyle (73%) and fully affordable (20%). It has gained 50,172 units since 2020.
- Phoenix: Features 44,331 units under construction, with 89% in the Lifestyle segment. Supply growth has been progressive, excelling in 2024 with 24,051 units.
- Austin: Has 38,796 units underway, three-quarters of which are Lifestyle. The metro added 94,251 units between 2020 and 2024.
- Charlotte: Boasts a pipeline of 36,873 units, heavily favoring Lifestyle (90%). It saw a significant influx of 55,862 units between 2020 and 2024.
- New Jersey: Has 36,568 units under construction, with nearly 93% for Lifestyle inventory. The state added 61,604 units from 2020 to 2024.
- Miami: Developers have 33,989 units underway, with Lifestyle at 80%. The metro gained 81,295 units between 2020 and 2024.
- Atlanta: Features 33,907 units under construction, 90% of which are Lifestyle. It delivered 95,019 units from 2020 to 2024.
- Los Angeles: Ranks ninth with 29,692 units underway, including a notable 28% for fully affordable properties. Total deliveries reached 60,821 units between 2020 and 2024.
- Houston: Has 29,350 units underway, with 83% in the Lifestyle segment. The city added 100,923 units from 2020 to 2024.
Construction Timelines and Asset Composition
The composition of new multifamily inventory nationwide is predominantly upscale Lifestyle properties, accounting for 80% of units. Fully affordable and Renter-by-Necessity (RBN) units make up 15% and 5%, respectively. Construction times vary significantly by metro and asset class. For instance, RBN projects in Atlanta averaged the shortest construction time at 546 days, while Lifestyle projects in Los Angeles took the longest at 943 days. New York City faces the longest construction times for fully affordable properties at 868 days.