June 15, 2023
2023 paints an intriguing canvas for the U.S. multifamily construction sector. Despite experiencing headwinds, construction is enduring, propelled by a group of power-player metros. At Offerd, we've sieved through extensive Yardi Matrix data to reveal the key markets that are the pulsating heart of the national multifamily construction scene - nearly 1.1 million units strong.
New starts might be facing a slowdown, yet, a significant chunk - 40% of the national total, remains within the grip of the top 10 metros. This group's unique configuration reveals Texas as a multifamily construction powerhouse, housing three of these top metros.
The crown is worn by Austin, leading the pack with a whopping 61,873 units under construction. Austin sets itself apart not only through sheer numbers but also through the magnitude of its communities, dwarfing others on this list.
Hot on Austin's heels, Dallas clinches the second spot with 60,532 units. However, the journey isn't without turbulence, as Dallas registered a slight contraction in new starts in the opening quarter of 2023.
Miami stakes its claim at the third position, showcasing resilience with 44,532 units under construction, irrespective of new starts declines.
Atlanta isn't far behind, cementing its fourth position with 41,204 units under construction, while Phoenix outshines all in completions despite witnessing a dip in construction starts.
In the sixth spot, New York City, a stalwart in the property sector, boasts 38,859 units under construction. A unique feature of NYC's performance is its surge in construction starts in Q1 2023, marking it as the only metro to register such a trend.
Securing the seventh position is Denver, tailed by Houston, which saw a dip in new starts following a strong showing in 2022. Representing California single-handedly, Los Angeles is ninth, demonstrating resilience despite a substantial decrease in Q1 2023 construction starts.
Rounding off the top 10 is Charlotte, holding onto its spot amidst a slowdown in new starts and deliveries.
Although new starts in multifamily construction are seeing a national slowdown, it's inspiring to see certain markets standing firm, sustaining momentum. As 2023 unfolds, we keenly anticipate the evolution of these market dynamics amidst shifting conditions and economic landscapes.
Keep a tab on Offerd for your fill of multifamily construction trends and insights, as we continue to monitor these trendsetters of the multifamily construction sector.