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U.S. Apartment Construction to Hit Record High in 2024 The U.S. apartment construction market is set to break records in 2024, with over 518,000 new rental units completed, marking a historic high in construction. A record year: According to RentCafe, 2024 marks a historic milestone for apartment construction in the U.S. as the number of completions surpasses 500,000 units for the first time on record. This influx of new inventory is a 9% increase over 2023 and a 30% rise from 2022. For context, that’s enough units to house the entire population of Atlanta. Leading the way: For the third consecutive year, New York is set to lead completions with nearly 33,000 new units, driven by a surge in Brooklyn, which will account for almost 30% of this supply. Dallas is close behind, with 32,932 units, and Austin follows with 21,506 units. Together, these two Texas metros will contribute nearly 10% of all new apartments nationwide by the end of 2024. Close contenders: Phoenix and Atlanta round out the top five markets, expecting over 20,000 and 18,000 new apartments, respectively, by year’s end. These cities are benefiting from strong population growth and demand. Looking ahead: RentCafe says the U.S. is expected to add 2 million new apartments by 2028. Interestingly, about 47% of the 369 metros analyzed are projected to build more apartments over the next five years than they did between 2019 and 2023. However, a slowdown is anticipated in 2025, with a 15% decline in completions compared to 2024. Why it matters: The US apartment construction market is to reach new heights in 2024 for the third year in a row, but the focus is shifting towards lower-risk projects as developers brace for a slowdown in the coming years. #multifamily #realestate Rent Cafe U.S. New Apartment Deliveries by Year Source: RentCafe Analysis of Yardi Matrix

New U.S. apartment construction is expected to reach a record high this year, with developers on track to deliver an estimated 518,108 units by the end of 2024, according to a report by RentCafe.  Nearly 60% of the expected deliveries are clustered in the 20 most active new multifamily construction markets. New York City leads the list for the third year in a row, with an estimated 32,935 units expected to come online. Dallas’s estimate is only three units behind at 32,932.  Looking ahead, approximately 2 million new apartments are expected to be available in the U.S. between 2024 and 2028. Nearly half — 47% — of the 369 metros analyzed in the report are likely to build more apartments in this period than they did between 2019 and 2023. City of New York City of Dallas RentCafe.com   Housing Analysis and Commentary – Canada – July 2024 - https://lnkd.in/g5fyhEFZ

New multifamily supply is slowing down. We anticipated delays and a reduction in new apartment construction starts, and it's playing out exactly as expected. According to recent reports, developers are pausing projects due to rising interest rates and stagnant rents. This trend reduces new future supply in the market, which positions our properties to benefit significantly. With fewer new apartments coming online and assuming continued demand, we foresee an increase in rents for our properties in the coming years after the current new deliveries are absorbed. Read more about the market shift here: https://lnkd.in/g_T_CcqG To learn more about us and our investment thesis - submit a form on our website - https://lnkd.in/gX5_U_Pu #markets #development #supply

🏗️Surge in Apartment Construction in Canada 🏢 A new CMHC report reveals a significant increase in apartment construction in 2023, with Toronto, Vancouver, and Calgary hitting record highs. Despite this growth, demand continues to outpace supply, especially in rental housing. Key points include a 7% rise in apartment starts, a decline in single detached homes, and the urgent need for 3.5 million additional units by 2030 to address affordability. At Capcrete, we are committed to contributing to solutions for this growing demand. https://lnkd.in/gWm6Di5D #construction #housingmarket #cmhc #capcrete #realestate #apartments #rentalhousing #housingdemand #affordablehousing #buildingcommunity #canadianhousing #torontorealestate #vancouverrealestate #calgaryrealestate #housingcrisis #propertydevelopment #urbanplanning #residentialconstruction #buildingbetter #constructionindustry #housingstarts #realestateinvesting #propertymarket #constructionnews #realestatenews #housingtrends #rentalsupply #housingaffordability #constructionprojects #newhomes #condos #multifamilyhousing #homebuilding #constructiongrowth #realestatecanada #housingdevelopment #constructionupdate #rentalmarket #propertymanagement #housinginnovation #buildingdesign #housingconstruction #realestateinvestments #sustainablehousing #urbanhousing #propertydevelopment #constructionbusiness #realestateopportunities #buildingtoday

Dublin Rental Market at Inflection Point as Apartment Construction Slows "The Dublin residential rental market is showing signs of accelerating inflation, with new data from Daft.ie revealing open-market rents in the capital have now risen to €2,476 per month, marking a 5.2% annual increase. This rate of inflation is particularly noteworthy as it represents double the pace observed at the end of 2023, when the market appeared to be stabilising. The acceleration in Dublin’s rental inflation can be directly attributed to the marked decline in apartment construction activity. While 2023 saw a record-breaking completion of 9,000 apartments, the sector has experienced a significant pullback. Construction data for the first nine months of 2024 shows apartment completions in Dublin have fallen by a quarter compared to the same period last year. This contraction is primarily driven by the exodus of institutional investors from the market, who have retreated in response to the sharp uptick in interest rates since mid-2022..." - Ian Lawlor Read more: https://lnkd.in/ejgJXuKf

Great points Adam Dunn! The sharp decline in Boston and Cambridge highlights the need for adaptable strategies, while the relative resilience of the suburbs points to some emerging opportunities. For developers: Watch for potential interest rate cuts, staying flexible and proactive will be key in navigating these shifts and capitalizing on new growth areas. The evolving landscape is creating a more nuanced market – one where agility will be a major asset. #BostonRealEstate #ApartmentConstruction #HousingMarket #RealEstateTrends #MultifamilyDevelopment

More than half a million apartments are expected to be completed this year, an increase of 9% over 2023 and 30% from 2022. New inventory is enough to house the entire population of Atlanta, with 60% of new apartments coming to market in just 20 metros, according to a study by RentCafe. Construction is likely to slow down next year, with more than half of the 370 markets studied expected to see a decelerated pace of activity. Apartment deliveries may surge again in 2028, the report said. The top market for apartment construction is New York, for the third year in a row, with nearly 33,000 new units expected to become available this year. Brooklyn is playing a key role in this growth, adding three times more units this year than Manhattan. New York metro's apartment construction boom stems from the Northeast's persistent housing shortage. Texas was a surprising chart-topper in second place, with Dallas expecting to add only a handful fewer units than New York this year. Austin is expected to add 21,506 units. Together, these two markets will account for nearly 10% of all new apartments in the United States in 2024, the study found. Dallas' consistent population growth, business-friendly environment, affordability compared to similar-sized metros, and strong infrastructure all are attractive for companies and construction projects. Phoenix secured the fourth spot with an estimated 20,141 new apartments expected to open across the metro area before the end of 2024, and Atlanta rounded out the top five with 18,520 new ones expected by the year's end. By 2028, two million apartments are set to come online despite uncertainties in most markets that are causing fewer new projects to start. High-end apartments continue to dominate new developments, as borrowing costs and economic uncertainty are causing developers to reevaluate their strategies, leaving renters in some markets with limited affordable options, said RentCafe. Even with apartment construction reaching a new peak in 2024, higher borrowing costs are affecting the multifamily sector, prompting many developers to adjust their strategies for the coming years toward lower-risk projects in markets with strong demand and job growth.

US to Add Record Number of Apartments This Year Article originally posted on Globe St. on August 9, 2024 More than half a million apartments are expected to be completed this year, an increase of 9% over 2023 and 30% from 2022. New inventory is enough to house the entire population of Atlanta, with 60% of new apartments coming to market in just 20 metros, according to a study by RentCafe. Construction is likely to slow down next year, with more than half of the 370 markets studied expected to see a decelerated pace of activity. Apartment deliveries may surge again in 2028, the report said. The top market for apartment construction is New York, for the third year in a row, with nearly 33,000 new units expected to become available this year. Brooklyn is playing a key role in this growth, adding three times more units this year than Manhattan. New York metro’s apartment construction boom stems from the Northeast’s persistent housing shortage. Texas was a surprising chart-topper in second place, with Dallas expecting to add only a handful fewer units than New York this year. Austin is expected to add 21,506 units. Together, these two markets will account for nearly 10% of all new apartments in the United States in 2024, the study found. Dallas’ consistent population growth, business-friendly environment, affordability compared to similar-sized metros, and strong infrastructure all are attractive for companies and construction projects. Phoenix secured the fourth spot with an estimated 20,141 new apartments expected to open across the metro area before the end of 2024, and Atlanta rounded out the top five with 18,520 new ones expected by the year’s end. By 2028, two million apartments are set to come online despite uncertainties in most markets that are causing fewer new projects to start. High-end apartments continue to dominate new developments, as borrowing costs and economic uncertainty are causing developers to reevaluate their strategies, leaving renters in some markets with limited affordable options, said RentCafe. Even with apartment construction reaching a new peak in 2024, higher borrowing costs are affecting the multifamily sector, prompting many developers to adjust their strategies for the coming years toward lower-risk projects in markets with strong demand and job growth.

The Canadian real estate market is experiencing significant pressure due to rising construction costs, affecting both residential and commercial sectors. This trend is driven by a combination of factors, including supply chain disruptions, labor shortages, and increased demand for construction materials. Key Impacts: Increased Housing Prices: Higher construction costs are typically passed on to buyers, resulting in increased prices for new homes and renovations. This exacerbates housing affordability issues, particularly in urban centers like Toronto and Vancouver. According to Altus Group, construction costs in Vancouver for a low-rise condominium project are estimated to range from $325 to $400 per square foot, reflecting a rise from previous years (Business in Vancouver). Project Delays and Cancellations: Many construction projects face delays or are put on hold due to budget overruns driven by escalating costs. This situation reduces the supply of new housing and commercial space, further tightening the market. The Canadian Construction Association (CCA) has reported a slowdown in new project starts, citing increased material costs and labor shortages as primary factors (https://bit.ly/4bCnL98). Renovation Costs: Homeowners looking to renovate are also affected by higher costs, which can deter improvements and reduce overall housing quality. The Linwood Homes report highlights that while some construction costs have stabilized, overall costs remain high due to persistent inflationary pressures and high interest rates (https://bit.ly/3zw7rti). Commercial Real Estate: The commercial sector sees increased leasing rates as developers and landlords seek to recoup higher building costs. This impacts businesses, particularly small and medium-sized enterprises, by increasing operational expenses. For example, fitting out Class B office space in Vancouver ranges from $85 to $155 per square foot, slightly up from previous years (https://bit.ly/3zw7wgA). For more detailed insights and figures on the increase in construction costs, you can refer to the following articles: https://bit.ly/4bCnL98 https://bit.ly/3zw7rti These sources provide valuable data on construction costs and their implications for the Canadian real estate market. Contact us to learn more today! #Realestate #MeloFinancialServicesInc

Prices are determined by supply and demand.” ― Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth ''The U.S. is poised to reach new heights in apartment construction for the third year in a row, with 2024 expected to set a new record: By the end of the year, developers are on track to complete a staggering 518,108 rental units, marking a 9% increase compared to 2023 and a staggering 30% rise from 2022. What’s more, 2024 is the first year in the history of U.S. apartment construction in which the number of completions will surpass the 500,000-unit threshold. The New York metro is leading the charge for the third consecutive year, followed by Dallas and Austin. Notably, the Dallas and Austin metro areas together are expected to welcome roughly 10% of all apartments opened nationwide by the end of December. Looking ahead, 2 million apartments are set to come online by 2028, despite uncertainties in most markets that are causing fewer new projects to start. Furthermore, about 47% of the 369 metros analyzed are likely to build more in the next five years than they did from 2019 to 2023.'' https://lnkd.in/ezZ4DwMN