Apartment construction falls to lowest point in nearly a decade

Apartment construction in the U.S. is at the lowest level in nearly a decade, according to software and data analytics company RealPage.

Just over two years ago, apartment construction peaked at a record high of over 1.1 million units underway at the end of the first quarter of 2023. Building volumes have dipped every subsequent quarter. 

Just over 542,800 units were under construction at the end of the second quarter this year. That was the lightest apartment construction volume since the third quarter of 2015.

Austin has experienced the steepest fall in construction activity in the past year. Roughly 18,000 units were under construction in the Texas capital at the end of the second quarter—less than half the volume of units underway a year ago.

Phoenix, Atlanta, Dallas, and New York also experienced significant declines. A small group of markets—Cincinnati, Richmond, and West Palm Beach—have seen construction numbers increase slightly from last year’s pace.