The number is staggering: The National Multifamily Housing Council says that developers would have to deliver 4.6 million new apartment units across the country by 2030 to meet the demand that consumers have for rental housing.
If you’re not good with math, that comes out to 373,000 new apartment units each year until that date.
It’s little wonder, then, that so few commercial brokers and developers are worried about overbuilding in this commercial segment.
The good news? RENTCafe, using data from its sister company, Yardi Matrix, said that the apartment market is now seeing a new high in the number of deliveries. According to the numbers, more than 345,000 new apartments are scheduled to be completed this year across the United States.
The construction boom is good news for renters. Doug Ressler, senior analyst with Yardi Matrix, said that the influx of new apartment units might actually lower rents in some of the country’s most expensive markets.
“With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees and free gym memberships,” Ressler said in a written statement.
What’s most interesting about the RENTCafe report is the fact that two Midwest markets have joined the ranks of 2017’s hottest cities for new apartments.
According to the report, 6,700 new units are expected to be completed in the Minneapolis-St. Paul market this year. Rents in the Twin Cities sit around $1,184, which, of course, is far lower than what you’d find in bigger markets such as Chicago, San Francisco or New York City.
Nashville is even busier, with RENTCafe reporting that as many as 8,500 new apartment units are about to enter the market. This will rank as the highest growth in inventory during the last five years.
“The number of new apartments popping on Nashville’s housing scene is astonishing,” Ressler said. “And there’s till room for growth. The area is slowly becoming a favorite relocation destination for people all across the country, both young workers look for a healthy work environment and retirees in search of quieter grounds.”