Texas was a surprise frontrunner in second place, with Dallas expected to add just a handful fewer units than New York this year. Austin is expected to add 21,506 units. Together, these two markets will account for nearly 10% of all new housing in the United States in 2024, the study found. Dallas’ steady population growth, business-friendly environment, affordability compared to similarly sized metropolitan areas and good infrastructure are all attractive to businesses and construction projects.
Phoenix secured fourth place with an estimated 20,141 new homes scheduled to open across the city by the end of 2024, and Atlanta rounded out the top five with 18,520 new homes expected by year-end.
Two million apartments are expected to come online by 2028, although uncertainties in most markets mean fewer new projects are being launched. High-end apartments continue to dominate new developments as borrowing costs and economic uncertainty cause developers to rethink their strategies, leaving renters in some markets with limited affordable options, according to RentCafe. Even though housing construction will reach a new peak in 2024, higher credit costs are impacting the multifamily housing sector and causing many developers to shift their strategies for the coming years toward lower-risk projects in markets with strong demand and job growth.
