These markets will see dramatic multifamily supply hikes this year
Just a few weeks ago, RealPage revealed that the multifamily residential market will see the most starts it has seen in nearly 30 years in 2020.
Out of the nation’s 50 largest apartment markets, all but six will have more units completed this year than the last, RealPage said.
The most drastic supply hike is predicted to be in Los Angeles. In 2020, there are an expected 17,600 units coming in the City of Angels, the largest supply it has seen in more than 20 years. It’s also about double the average from the past decade.
This supply is much needed, as occupancy rates in Los Angeles have been at 96% for the past five years. Despite this, rent growth in Los Angeles has fallen to its lowest point since the start of this economic cycle, in 2019.
Washington, D.C. will gain 16,000 units in 2020, about 7,800 more than in 2019. Occupancies are at 96%, while rent growth has been below 2% for the past five years.
Houston is also expected to see over 16,000 new apartments in 2020, about 8,500 more units than last year. RealPage said that kind of bump is not surprising for a metro like Houston, which is experiencing rapid population growth. However, due to recent hurricanes and volatile oil prices, the market ended the year with a quarter of net move-outs that brought occupancy down to 93.6%.
Phoenix, Seattle and Fort Lauderdale, Florida are projected to see supply increase by about 4,000 units this year, with Phoenix and Fort Lauderdale both reaching a two-decade peak, RealPage said.
Seattle, meanwhile, is seeing a 20-year high, with 12,700 units set to be completed this year. San Jose, San Francisco and Oakland, California, will also all see significant increases in supply.
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