15 Markets Where Apartment Construction Is Booming Most

Rising home prices and population surges into hot growth markets have helped drive a multifamily construction boom, the likes of which haven't been seen in decades.

In fact, it's been more than 50 years since this many apartment buildings were built in the United States in a single year, according to RentCafe. The listing site used data from its sister operation, Yardi Matrix, to analyze completed and projected completions that total an estimated 420,000 units by year's end in our 125 largest metro areas.

Here's a look at the 15 markets expecting the highest number of buildings with 50 or more units to complete construction during 2022. Real estate investors can consider these good locations, too, given the demand for such space.

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RentCafe says the New York Metro is expected to see the delivery of more than 28,000 new apartment units throughout 2022. That rose sharply from the 19,051 delivered in 2021 and makes the Big Apple one of the 10 (of 20) major markets to see five-year highs this year.

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The Dallas-Fort Worth metroplex had been the national leader for four years before 2022, and the 23,571 units expected to be completed this year are down 10% from last year. But that's still enough growth in this fast-growing market to rank No. 2 on this list.

RentCafe currently considers Miami the most competitive market in the country for apartment rentals. People hunting for space in this subtropical Florida hotspot will have 19,125 more units to vie for by the end of this year than at the end of 2021.

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The capital of Texas has been a centerpiece of go-go growth in recent years, driven by a huge surge in relocations and expansions by tech companies large and small. RentCafe says 18,288 new apartment units will be completed here in 2022, twice as many as in 2019.

Houston is an international hub for the energy industry and an economic powerhouse in a lot of other ways, too. The nation's fifth-largest metro market will add 17,759 new apartment units this year. And for the first half of the year, Houston led all markets with 4,746 new units completed.

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Phoenix is our 10th-largest metro area and No. 6 this year in the number of new apartments expected for delivery by the end of 2022. RentCafe projects 15,988 new units this year -- quite a surge since the 7,655 reported in 2018.

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RentCafe says 15,341 new apartment units will be completed in the Seattle market during 2022. That’s a strong jump from just 9,561 in 2020 and 12,856 in 2021 in the largest metro area in the Pacific Northwest. Seattle is also home to numerous major employers, such as Boeing, Amazon, Microsoft, and Starbucks.

Atlanta is the largest metro in the South that doesn’t have a Texas ZIP code. RentCafe projects 12,838 apartments to be completed across Atlanta in 2022 as the population and job market keep growing in this home to such iconic companies as Delta Airlines, Coca-Cola, and Home Depot.

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RentCafe sees 12,176 new units completed throughout 2022 in the nation’s capital and environs. Besides good government jobs, this area has become a high-tech and high-end contracting hub, and Amazon’s plans to build a second headquarters here will just add to that demand for apartment space.

Los Angeles is the nation's second-largest market and ranks No. 10 on the list of new apartments expected to be delivered in 2022, at 11,536. Home to some of the nation's priciest residential real estate, the demand for rental housing here can be expected to continue to be strong.

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This mid-Florida home to Mickey and Friends is our nation's 23rd-largest metro by population and is expected to see 11,338 new apartment units completed in 2022. That would be a five-year high for the Orlando market.

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The U.S. Census Bureau says Denver's metro population grew by 0.3% in 2021, to just under three million people. That influx of folks seeking to live the Rocky Mountain Way prompted investors to build 10,570 new apartment units in 2022.

The fast-growing Nashville market will see an estimated 9,620 new apartment units in 2022. That's quite a jump from the 4,369 recorded in 2019 in the home of the Grand Ole Opry and marks a five-year high, according to the Yardi Matrix data parsed by RentCafe.

North Carolina's capital city will see 9,104 new apartment units completed in 2022, RentCafe says. Compare that to the 3,782 constructed in 2019, the 3,334 in 2020, and an additional 4,491 last year. You can see what an economic hotspot this hub of government, education, and high-tech industries has become.

Raleigh isn't the biggest metro in North Carolina. Charlotte is about twice as big, but both grew by an eye-popping 1.5% to 2.4% in a single year, the Census Bureau says. The Queen City, a longtime banking and transportation hub, will see 8,732 new apartment units added to its inventory by year's end, RentCafe reckons.

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RentCafe says the last time more than 400,000 units were built nationwide in a single year was 1972. That was in the waning days of the Vietnam War and the midst of the baby boomers coming of age and forming their own households. Much has changed since then, but not everything: People need a place to live and providing them with options is still a sound way to invest.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Marc Rapport has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Home Depot, Microsoft, and Starbucks. The Motley Fool recommends Delta Air Lines and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and short October 2022 $85 calls on Starbucks. The Motley Fool has a disclosure policy.