Apartment deliveries are approaching a 50-year high nationwide, according to a report by RentCafe, which projects 420,000 apartment units will be delivered this year.
Dallas-Fort Worth has been no. 1 in apartment deliveries in each of the last four years, but it is ceding the title to New York City. The Big Apple is estimated to have 28,000 units delivered this year, a 50 percent increase from last year. That’s a welcome development for the city but does little more than make a dent. A study from AKRF at the beginning of the year identified a need for 560,000 units by 2030.
Changing state, South Florida – which has led the nation in rent hikes for the past two years – is in for a break, according to experts and data. The Realtor.com reports show that the annual South Florida median rent increase dropped to 57 percent in March, 52 percent in April, 46 percent in May, and 37 percent in June. Theories abound that some of the hunger for apartments for rent has dwindled due to out-migration and new apartment deliveries.
Scores of transplants arrived in South Florida following its early reopening from the pandemic lockdown in 2020, and rent hikes ensued. But now, they are being called back to the office in the states where their jobs are located, and the slowdown in population influx has eased demand for rentals. Moreover, more than 15,000 apartments are slated to be completed by year-end, with absorption projected to be close to 7,000 units.
By 2024, the region will get over 29,000 new apartments. According to Berkadia’s mid-year multifamily report, this would alleviate the rent strain felt last year when 13,000 completed units barely made a dent in 30,600 absorbed apartments.
