Article Originally Posted By AzBigMedia On July 30, 2021
U.S. apartment construction volumes are elevated, and a handful of familiar markets make up the bulk of activity. But Phoenix has the most multifamily product under construction that will be completed within the coming year, with nearly 20,100 units set to complete in the next 12 months. That accounts for the bulk of the nearly 28,600 units currently under construction, which will up the inventory base here by a sizable 7.6%. Phoenix was also a big contender in the past decade, with 57,100 units completed, increasing the existing base by 18.2%.
As of 2nd quarter 2021, over 623,500 units were under construction in the 150 largest U.S. apartment markets. This marks the 11th consecutive quarter of apartment construction activity exceeding 600,000 units. While the latest construction number doesn’t quite match up to the over 690,000 units that were underway a little over a year ago in 1st quarter 2020, it still is one of the highest construction numbers on record.
Units currently under construction in the U.S. translate to near-term inventory growth – within the next 18 or so months – of 3.4%. In the coming year, alone, inventory growth is slated for 2.2%, which is up slightly from the prior year’s growth.
A good portion of this elevated construction activity is focused on a handful of key apartment markets. Only 13 markets nationwide account for nearly half of apartments under way. Each of those 13 markets have more than 15,000 units under construction.