Apartment Completion Hit a Two-Decade High

[Jorge Abreu]

💥In the second half of 2020 and the first half of 2021, roughly 363,000 rentals were delivered. Marcus & Millichap says this was the largest completion volume over a four-quarter stretch in at least two decades.

The deliveries weren’t uniform throughout the nation. In fact, almost one-third of US deliveries were in seven metros, each of which gained more than 10,000 units.

Two metros exceeded the 20,000-unit threshold. 👉Dallas-Fort Worth led the way, adding 27,700 apartments. 👉Houston was next with 20,200 new apartments. Another Texas market, Austin, also added more than 10,000 units. Other Sunbelt markets, including Atlanta, Phoenix, and Charlotte, also added markets at a fast clip.

The national vacancy rate in central business districts peaked at 6.3% at the end of last year but has since settled to 5.2% in June 2021, according to Marcus & Millichap. While that rate is down ten basis points year over year, it is still 100 basis points higher than it was in 2019.

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