Top 5 Markets for Multifamily Deliveries
- Aug 02, 2019
More than 115,000 apartments came online in the first half of the year, as rental development continued to be solid. The first five markets for sheer number of units completed—Dallas, Seattle, Miami, Atlanta and Phoenix—accounted for 27.8 percent of total deliveries. When looking at the numbers by the percentage of existing stock that new deliveries account for, the ranking changes significantly, highlighting that development activity is higher in secondary and tertiary markets—such as Nashville and Charleston.
Additionally, some 200,000 units were underway throughout the country at the end of the second quarter, about half of which is expected to come online by year’s end. In total, roughly 300,000 units are expected to be completed in 2019, almost on par with last year, when developers delivered 325,000 apartments.
Miami’s multifamily development activity has been outpacing national trends for the past seven years, as the metro’s population continued to expand at an accelerated pace. Developers completed 5,400 units in the first two quarters, accounting for 1.9 percent of the metro’s total multifamily stock. In total, 16,176 units are expected to come online this year, a 20.8 percent increase from 2018 and the highest level this cycle.
In Brickell, Florida East Coast Realty completed the 821-unit Panorama Tower, the submarket’s largest multifamily property to date. Located at 1101 Brickell Ave., the high-rise offers two-bedroom apartments ranging from 1,362 to 1,734 square feet. The recently completed property is also one of Miami’s tallest residential skyscrapers.
Boosted by its financial, energy and logistics sectors and strong population growth, Charlotte’s multifamily market continued to outperform almost every other metro in the Carolinas. Developers completed 3,215 units in the first half of the year, representing 1.9 percent of the total inventory. Some 7,200 apartments are slated to come online in 2019, 17.8 percent more than in 2018.
Flournoy Cos. completed the 382-unit District South in Ballantyne-Providence, located at 12600 District South Drive, one of the submarket’s largest communities to come online in recent years. Roughly 7 miles away, at 11120 Golf Links Drive, Simpson Housing is working on a 455-unit project slated for completion in the third quarter.
Nashville’s attempts to diversify its economy have paid off, attracting large companies, such as Amazon—who is slated to develop its new operations hub, where it plans to employ as many as 5,000 people over the next seven years—and AllianceBernstein. As a result, development activity has picked up pace and developers completed 2,734 units year-to-date through June, 2.1 percent of the metro’s existing multifamily stock. The total 5,322 apartments set to come online this year represent a 31.2 percent decrease from the record number of units delivered in 2018—7,734.
In the first quarter, Lifestyle Communities completed the 411-unit LC Germantown, located at 1220 Second Ave. N. and the second-largest community in the metro’s Downtown-north submarket. The company is also one of the largest apartment owners in Columbus, Ohio.
Thanks to its booming tech and e-commerce industries, Seattle’s economy is very strong, which continues to keep the metro among the nation’s top-performing multifamily markets on multiple levels. Development-wise, Seattle has consistently outpaced national trends over the past decade. In the first two quarters, 6,314 units came online in the Emerald City, representing 2.6 percent of its total multifamily inventory. In total, developers are expected to complete 16,385 units this year, 55.8 percent more than in 2018 and the highest level on record.
In Bellevue-East, Carmel Partners finished work on the 618-unit Hyde Square, the submarket’s largest community to date. The four-building property offers studios, one- and two-bedroom units ranging from 495 to 1,122 square feet.
Bolstered by its cargo and automotive industries, Charleston’s economy has rapidly grown in recent years and it’s now one of the most powerful in the nation. As a result, multifamily demand skyrocketed over the past three years. Developers completed 1,890 units in the first half of the year, representing 3.0 percent of its admittedly limited inventory. In total, some 3,650 units are expected to come online in Charleston in 2019, 18.5 percent fewer than the record high 4,475 apartments delivered last year, but still leading other U.S. markets.
In Summerville, Wood Partners completed the 329-unit Alta at Brighton Park, the submarket’s second-largest multifamily property. Next year, Watkins Real Estate is slated to deliver a 360-unit community, which will become the biggest in Summerville.