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.
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.
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.
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: 16,262 (+66.3%)
3. Washington, D.C.: 14,541 (+50.5%)
4. Houston: 11,500 (-3.1%)
5. Los Angeles: 11,296 (+16.5%)
6. Atlanta: 10,939 (+9.7%)
7. Austin: 10,301 (-10.0%)
8. Seattle: 9,816 (+29.9%)
9. Phoenix: 9,334 (+13.6%)
10. Denver: 8,653 (-29.7%)
11. Boston: 8,449 (+20.8%)
12. Chicago: 7,797 (+0.8%)
13. New York City: 7,335 (+24.2%)
14. San Francisco: 7,166 (+64.8%)
15. Twin Cities: 6,760 (+4.9%)
16. Charlotte: 6,692 (+55.3%)
17. Orlando: 6,662 (+21.5%)
18. Philadelphia: 6,071 (+27.7%)
19. Nashville: 5,457 (+41.1%)
20. Tampa–St. Petersburg: 5,103 (+20.1%)
21. San Antonio: 4,960 (-6.5%)
22. New Jersey–Northern: 4,955 (+29.9%)
23. Salt Lake City: 4,633 (-0.6%)
24. Louisville: 4,484 (+215.6%)
25. White Plains: 4,464 (+199.6%)
DOWNLOAD THE FULL REPORT
Related Stories
| Aug 11, 2010
Morphosis builds 'floating' house for Brad Pitt's Make It Right New Orleans foundation
Morphosis Architects, under the direction of renowned architect and UCLA professor Thom Mayne, has completed the first floating house permitted in the U.S. for Brad Pitt’s Make It Right Foundation in New Orleans.The FLOAT House is a new model for flood-safe, affordable, and sustainable housing that is designed to float securely with rising water levels.
| Aug 11, 2010
Bovis Lend Lease, Webcor among nation's largest multifamily contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 Multifamily Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Looney Ricks Kiss Architects wins industry honors for mixed-use, multifamily, and residential designs
Looney Ricks Kiss Architects won four Aurora Awards for its architectural designs during the recent Southeast Building Conference in Orlando, including a Grand Aurora Award for a Mixed Use Multi Family community located in the West Village area of Dallas.
| Aug 11, 2010
Jacobs, Arup, AECOM top BD+C's ranking of the nation's 75 largest international design firms
A ranking of the Top 75 International Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
See what $3,000 a month will get you at Chicago’s Aqua Tower
Magellan Development Group has opened three display models for the rental portion of Chicago’s highly anticipated Aqua Tower, designed by Jeanne Gang. Lease rates range from $1,498 for a studio to $3,111 for a two-bedroom unit with lake views.
| Aug 11, 2010
Architecture Billings Index flat in May, according to AIA
After a slight decline in April, the Architecture Billings Index was up a tenth of a point to 42.9 in May. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. Any score above 50 indicates an increase in billings.
| Aug 11, 2010
Construction employment declined in 333 of 352 metro areas in June
Construction employment declined in all but 19 communities nationwide this June as compared to June-2008, according to a new analysis of metropolitan-area employment data released today by the Associated General Contractors of America. The analysis shows that few places in America have been spared the widespread downturn in construction employment over the past year.
| Aug 11, 2010
Jacobs, Hensel Phelps among the nation's 50 largest design-build contractors
A ranking of the Top 50 Design-Build Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
