Top Southeast Markets for Multifamily Construction
- Apr 27, 2021
The Southeast managed to stay afloat during the pandemic thanks to, among other factors, lower living costs, which have attracted large numbers of movers since the onset of the pandemic. According to Yardi Matrix data, more than 73,000 units were under construction in the region as of April, representing 5.8 percent of total stock. Some 43,000 units are scheduled for completion by year-end.
Southeastern metros are expected to bounce back from the economic crisis quicker than high-cost, congested markets, leading to rising multifamily demand going forward. Here’s a breakdown of the region’s markets leading construction activity as of April, based on Yardi Matrix data.
Source: Yardi Matrix
5. Charleston, S.C.
The metro’s strong population gains have sustained robust multifamily demand in recent years. As a result, 4,936 units across 20 properties were underway as of April, representing 7.1 percent of Charleston’s total inventory. Developers focused on the Summerville submarket, where 1,163 units—nearly a quarter out of the total pipeline—were under construction.
The largest development taking shape in Summerville is Nexton Parkway, a 345-unit community developed by The Spectrum Cos. The company broke ground on the five-building luxury property at the end of 2019, aiming for completion in the first quarter of 2022. The asset is also part of the 5,000-acre Nexton master-planned community, located north of Charleston.
4. Greenville, S.C.
As of April, Greenville’s active multifamily pipeline included 5,673 units under construction across 25 assets. These projects account for 8.9 percent of the market’s total inventory, which is expected to gain increased attention thanks to its high-growth tertiary status.
The 696-unit Grand Oaks of Spartanburg was the largest property underway in the market as of April. Private developer Thomas Holderby broke ground on the eight-building, multiphase project in March 2020, with completion scheduled for early 2023. The community is located on 60 acres near the Upward Star multisports complex.
3. Carolina Triangle, N.C.
The market had 8,736 units across 35 properties under construction, equal to 5.3 percent of total stock. More than half of those are expected to be delivered by year-end, with development activity concentrated in the Morrisville submarket, where more than 1,500 units were underway.
Wood Partners was the most-active developer in the market—the Charlotte-based company was working on three communities totaling more than 900 units as of April. The projects include the 403-unit Alta Davis in Morrisville and the 250-unit Alta Wren in Cary. The projects broke ground last summer less than one month apart.
2. Charlotte, N.C.
Charlotte’s development scene is not the only sector where the metro is showing its strength. In 2020, Charlotte was one of the region’s most-active markets for multifamily transactions. As of this April, a total of 15,571 units across 70 properties were underway in the metro, accounting for 8.4 percent of total inventory. What’s more, the thriving multifamily market paved the way for the transformation of underutilized assets into vibrant communities, making Charlotte an appealing alternative to dense urban centers.
Construction was concentrated in the North Charlotte submarket, where seven properties totaling some 1,900 units were underway. Nearly half of those are scheduled for completion this year, while the remaining units are anticipated to come online in 2022.
As residents are leaving high-priced cities in favor of more affordable and less dense alternatives, Atlanta continued to expand its multifamily inventory. The metro had 19,435 apartments under construction as of April, accounting for 4.3 percent of total stock.
Development activity was concentrated in the West End/Fairlie Poplar/Underground submarket, where more than 2,600 units were underway. The submarket is also home to Stream Realty and CIM Group’s $5 billion Centennial Yards redevelopment, rising on the former Norfolk Southern railroad office and freight depot and dubbed as the largest mixed-use development in the Southeast. The multifamily component of the project will include 1,000 units, scheduled for completion in the first quarter of 2022.
Yardi Matrix covers all multifamily properties of 50-plus units across 133 markets in the United States. This ranking reflects transactions for properties within that sample group.