In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.Â
While multifamily owners, developers, and property managers collectively braced for severe drops in rent growth, construction starts, project completions, and availability of capital amid the COVID-19 pandemic, the drastic declines never materialized.
Rent growth did take a step back in select markets, especially in "high-cost gateway" metros like San Jose (-13.7%) and San Francisco (-9.4%), as renters continued to leave pricey urban neighborhoods for less-dense, cheaper suburban areas.
But on the flip side, "many tertiary and tech hub markets have benefited from migration out of the gateways," wrote the authors of the Yardi Matrix report. Secondary and tech markets like the Inland Empire, Sacramento, Tampa, and Las Vegas all saw solid rent growth in 2020.Â
Â
Multifamily construction pipeline for 2021
Other than the temporary shutdowns of work sites during the pandemic, construction work on multifamily housing developments continued to hum along through 2020 and into 2021. In all, 285,000 multifamily units were delivered throughout U.S. markets in 2020, down about 7% from 2019, but not nearly as severe a drop as many had predicted.
According to Yardi Matrix, the multifamily sector has a "robust pipeline" of new projects, with some 765,000 units in some stage of construction as of early 2021. This "should keep deliveries above that 300,000 mark for the next few years." The firm projects 327,718 units will be delivered in 2021.Â
Here are the top 25 multifamily markets for 2021 (total number of construction completions, % growth in completions YOY):
1. Dallas: 22,909 completions (+12.1% YOY)
2. Miami:Â 16,262 (+66.3%)
3. Washington, D.C.:Â 14,541 (+50.5%)
4. Houston:Â 11,500 (-3.1%)
5. Los Angeles:Â 11,296 (+16.5%)
6. Atlanta:Â 10,939 (+9.7%)
7. Austin:Â 10,301 (-10.0%)
8. Seattle:Â 9,816 (+29.9%)
9. Phoenix:Â 9,334 (+13.6%)
10. Denver:Â 8,653 (-29.7%)
11. Boston:Â 8,449 (+20.8%)
12. Chicago:Â 7,797 (+0.8%)
13. New York City:Â 7,335 (+24.2%)
14. San Francisco:Â 7,166 (+64.8%)
15. Twin Cities:Â 6,760 (+4.9%)
16. Charlotte:Â 6,692 (+55.3%)
17. Orlando:Â 6,662 (+21.5%)
18. Philadelphia:Â 6,071 (+27.7%)
19. Nashville:Â 5,457 (+41.1%)
20. Tampa–St. Petersburg: 5,103 (+20.1%)
21. San Antonio:Â 4,960 (-6.5%)
22. New Jersey–Northern: 4,955 (+29.9%)
23. Salt Lake City:Â 4,633 (-0.6%)
24. Louisville:Â 4,484 (+215.6%)
25. White Plains:Â 4,464 (+199.6%)Â
Â
DOWNLOAD THE FULL REPORT
Related Stories
Urban Planning | May 25, 2023
4 considerations for increasing biodiversity in construction projects
As climate change is linked with biodiversity depletion, fostering biodiverse landscapes during construction can create benefits beyond the immediate surroundings of the project.
K-12 Schools | May 25, 2023
From net zero to net positive in K-12 schools
Perkins Eastman’s pursuit of healthy, net positive schools goes beyond environmental health; it targets all who work, teach, and learn inside them.
Contractors | May 24, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023
Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.
Mass Timber | May 23, 2023
Luxury farm resort uses CLT framing and geothermal system to boost sustainability
Construction was recently completed on a 325-acre luxury farm resort in Franklin, Tenn., that is dedicated to agricultural innovation and sustainable, productive land use. With sustainability a key goal, The Inn and Spa at Southall was built with cross-laminated and heavy timber, and a geothermal variant refrigerant flow (VRF) heating and cooling system.
Architects | May 23, 2023
DEI initiatives at KAI Enterprises, with Michael Kennedy, Jr. and Gyasi Haynes
Michael Kennedy, Jr. and Gyasi Haynes of KAI Enterprises, St. Louis, describe their firm's effort to create a culture of diversity, equity, and inclusion—and how their own experiences as black men in the design and construction industry shaped that initiative.
Multifamily Housing | May 23, 2023
One out of three office buildings in largest U.S. cities are suitable for residential conversion
Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.
Architects | May 23, 2023
Ware Malcomb hires Francisco Perez-Azua as Director, Interior Architecture & Design, in its Miami office
Ware Malcomb hires Francisco Perez-Azua as Director, Interior Architecture & Design, in its Miami office.
K-12 Schools | May 22, 2023
The revival of single-building K-12 schools
Schools that combine grades PK through 12 are suddenly not so uncommon. Education sector experts explain why.Â
Architects | May 19, 2023
Snøhetta architects make a bid to unionize the firm's New York studio
Employees at the New York office of architecture firm Snøhetta have filed a petition with the National Labor Relations Board (NLRB) to unionize the studio. Snøhetta employees’ action marks the third time architects at a private-sector architecture studio in the U.S. took that step.
Healthcare Facilities | May 19, 2023
A new behavioral health facility in California targets net zero energy
Shortly before Mental Health Awareness Month in May, development and construction firm Skanska announced the topping out of California’s first behavioral health facility—and the largest in the nation—to target net zero energy. Located in Redwood City, San Mateo County, Calif., the 77,610-sf Cordilleras Health System Replacement Project is slated for completion in late 2024.