Top 10 Markets for Multifamily Deliveries in H1 2023
These cities accounted for 35 percent of new product nationally, according to Yardi Matrix data.
Multifamily demand continued to stay elevated in 2023 despite major economic headwinds, although overall the sector was underperforming compared to 2022 during the first six months of the year. According to Yardi Matrix data, 154,366 units came online nationwide between January and June 2023. The volume of multifamily deliveries accounts for a 60-basis-point increase from the 153,314 units that were delivered last year during the same period.
In the ranking below, we showcase the top ten markets for deliveries in the first half of 2023 by the number of units, based on Yardi Matrix data. Combined, a little over 53,500 units came online in these metros, accounting for roughly 35 percent of the national volume.
After ranking second in 2022, Houston is now at 10 on our list. The metro recorded 3,910 multifamily deliveries to its stock between January and June 2023. This represents 48.6 percent less than the new stock registered during the same time period last year (8,035 units) and 1.5 percent of the total stock. Yardi Matrix anticipates Houston’s rental inventory will grow by 2.1 percent. As of June, another 38,552 units were under construction.
The number of construction starts decreased in the metro, to 6,562 units in 29 communities in the first six months of 2023, from 9,650 units in 40 properties during the same interval in 2022.
Submarkets in the west side of Houston led in deliveries, where more than 3,400 units were completed, Yardi Matrix data shows. Only 4 percent of the units that came online in 2023 so far were in RBN properties, while the upscale Lifestyle segment accounted for 96 percent of all deliveries. The Keegan at Mission Glen is among the amplest multifamily projects delivered in 2023 so far in West Houston. The 408-unit property owned by SimplyHome by Camillo was built with the help of a $35.6 million loan originated by Veritex Community Bank.
Denver made the list with a total of 4,270 units delivered in the first half of 2023. These units were spread across 23 properties. These completions represent 2.7 percent of the total stock. Yardi Matrix anticipates Denver’s stock will grow by 12,478 units in 2023, the equivalent of 4.1 percent of total stock and below the 4.6 percent five-year average.
Both recent stock and the current pipeline were heavily favoring upscale development, with an overwhelming total of 4052 recently delivered units being part of the Lifestyle segment, while the Renter-by-Necessity segment expanded by 218 units.
The number of construction starts in 2023 declined, being 25 percent lower than in the first half of 2022: 6046 units within 31 communities in 2023 and 7573 units within 33 communities in 2022.
Denver–South led in the volume of deliveries with 712 units added to stock in 2023, followed closely by Denver–Airport, with 704 units, and Denver–Central with 667 units. The largest property delivered in the first half of 2023 in Denver was the 390-unit AMLI RiNo in Denver–Five Points–Uptown, developed by AMLI Residential.
Developers were busy over the past decade, with a strong demographic expansion in Orlando, with activity reaching its peak in 2021, when deliveries reached an all-time high of 12,948 units, 5.0 percent of stock. In 2022, 7,398 units were added to the stock. This year through June, 4,445 new units have been added to the stock, 2.5 percent of stock.
In June, there were 30,306 units under construction in Orlando, with 5,437 of them being started in the first half of 2023. In the same time period in 2022, developers broke ground on 9,199 units. Newly added stock favored upscale housing in 2023, with 96.7 percent of units being in Lifestyle projects. Consequently, the RBN segment grew merely by 3.3 percent.
Melbourne had the most units delivered this year at 762, followed by Metro West with 640 and Sanford 604. The largest property delivered in Orlando in 2023 so far was the 323-unit The Addison Gateway in Orlando–Vista Park, owned by a joint venture between JBL Asset Management and ContraVest. The property was built with aid from a $40.2 million loan originated by Northwestern Mutual.
New supply is blooming in Charlotte due to strong in-migration as well as capital investment from new employers. A total of 4,595 units were added to the stock in the first six months of 2023, representing 3.0 percent of total stock and a roughly 33 percent increase from the 3,458 units delivered during the same time period in 2022. Of the delivered invetory, 88.6 percent was in Lifestyle units, with the remaining 11.4 percent in Renter-by-Necessity projects.
After six months of 2023, there were 35,472 units under construction in Charlotte. Developers broke ground on 6,441 units split between 27 communities in the first half of 2023, while during the same time period in 2022, construction began on 7,846 units or 32 units.
Colonial Village–Montclaire had the most units delivered in the first half of the year with 846, followed by Monroe and Foxcroft, 350 and 340 units respectively. Elan Indian Trail was among the amplest multifamily projects delivered in 2023 through June in Charlotte. The 350-unit property owned by Greystar was built with the help of a $42.6 million loan originated by U.S. Bank.
Sixth on our list, Miami had 5,109 units in 22 properties delivered between January and June 2023, representing 3.3 percent of existing stock. The volume of completions recorded a 34 percent decrease from the same time in 2022, when 6,852 units were added. As of June, Miami’s pipeline included another 47,688 units under construction.
The number of units that broke ground in the first half of 2023 also decreased in Miami, to 9,969 units in 35 properties, from 12,937 units in 44 properties in 2022.
The RBN segment accounted for roughly 19 percent of 2023’s deliveries, while the Lifestyle component gained the rest. South Miami, at 650 units delivered, Fontainebleau–University Park with 600 units and Downtown Miami with 560 units led stock expansion in the first half of 2023. Downtown Miami also houses the largest project delivered in 2023 through June in the metro, the 560-unit Downtown 1st owned by Melo Development and built with a $75 million construction loan originated by Truist Bank.
Halfway through our list we find Dallas, a metro that has been leading the nation in this metric for years. However, the volume of multifamily deliveries has been on a downward trend. In 2023 through June, developers brought online 5,133 units in 20 properties, 1.6 percent of total stock. It also shows a 48 percent decrease from the same timeframe in 2022, when 9,829 units were added. Meanwhile, another 71,207 units were underway in Dallas as of June, the largest construction pipeline in the U.S.
Construction starts are only slightly lower than during the same period last year, with 15,747 units in 60 properties in the first half of 2023, from 16,046 units in 63 properties in the first half of 2022.
There was a balance between new RBN and Lifestyle supply delivered through June 2023, with 59 percent of the new stock being in the Lifestyle category and 41.2 percent in the RBN. The North Frisco/West McKinney submarket led in the volume of deliveries with 2,116 units added in the first half of 2023, followed by North Carrollton/The Colony with 2,071 units and North Garland/Rowlett/Sachse with 1,123 units. Shannon Creek was the largest property delivered in Dallas in the first half of the year. The 672-unit property, located in the Burleston submarket, is owned by Gold Creek Homes.
Austin managed to surpass both Houston and Dallas in this metric during the first six months of 2023. Developers brought online 5,473 units in Austin through June, representing 4.4 percent of the total stock. Despite having a population of less than 2.5 million, Austin had the largest multifamily pipeline in the U.S. as of May, eventually being surpassed by Dallas. Through June 2023, developers had 63,546 units under construction in the metro.
However, the number of units that broke ground in metro Austin also declined. Construction started on a total of 11,220 units in 41 properties in first half of 2023, whereas during the same time period in 2022, developers broke ground on 16,914 units in 62 properties.
Newly added stock favored upscale housing in 2023, with 91.6 percent of units being in Lifestyle projects. Dessau had the most units delivered this year, at 998, followed by San Markos/Kyle with 811 units and Round Rock-East with 798 units. The largest property delivered in Austin in 2023 through June was the 504-unit Parker in Dessau, owned by JEM Holdings. The property was built with aid from a $65.5 million loan originated by Guardian Life Insurance Company.
Atlanta’s multifamily inventory gained 6,178 units in the first six months of 2023, 68 percent of which are located in Suburban Atlanta, while the remaining 32 percent are located in Urban Atlanta. These units were spread across 29 properties and represented 2.3 percent of the total stock. Through June 2023, there were 43,804 units under construction in Atlanta.
During the first half of 2023, 10,380 units in 38 properties broke ground in Atlanta, while in the first six months of 2022, developers started working on 11,027 units in 51 properties.
The RBN segment accounted for roughly 13 percent of 2023’s deliveries, while the Lifestyle component gained the rest of 87 percent. Buckhead in Urban Atlanta led with 685 units delivered and Lawrenceville in Suburban Atlanta (656 units) led stock expansion in the first half of 2023. Midtown South houses the largest project delivered in 2023 through June in the metro, the 427-unit 903 Peachtree owned by CA Ventures and built with a $101 million construction loan originated by Quadreal Finance.
2. Washington D.C.
New supply is burgeoning in Washington D.C. with a total of 6,333 units added to the stock in the first six months of 2023, 1.8 percent of total stock and a little less than the 6,975 units delivered during the same time period in 2022. A total of 94 percent out of the stock added this year through June are in Lifestyle units, with the remaining 6 percent in Renter-by-Necessity projects.
After the first six months of 2023, there were 35,954 units under construction in Washington D.C. Developers broke ground on 5,288 units split between 19 communities in the first half of 2023, while during the same time period in 2022, construction began on 8,208 units in 35 units.
Brentwood/Trinidad/Woodridge had the most units delivered in the first half of the year with 821, followed by Barry Farms/Saint Elizabeths and Brightwood, 599 and 452 units. The Revel was among the amplest multifamily projects delivered in 2023 through June in Charlotte. The 500-unit property owned by a joint venture between Perseus Realty and Four Points is partly corporate housing, includes 40,000 square feet of retail and is located in Brentwood/Trinidad/Woodridge.
Bolstered by strong in-migration from more expensive metros, Phoenix keeps delivering new multifamily housing, now being number one on our list. Developers managed to bring online 8,062 units in 36 properties in the first six months of the 2023, accounting for 2.8 percent of total stock. In the first six months of 2022, only 6,398 units came online, making Phoenix the only metro to have more deliveries in the first half of 2023 than in the first half of 2022. Roughly 97 percent of new deliveries belong in the Lifestyle sector, with the rest of 3% bein RBN.
Another 42,678 units were under construction in Phoenix in June, out of which 10,886 broke ground this year. In the first six months of 2022, developers started working on only 8,606 units.
Tempe–North with 1,031 units in multifamily deliveries, Phoenix–Midtown with 1,020 units and Glendale–South, with 987 delivered units led the way in volume of deliveries in the first half of 2023. The second phase of Camden Tempe represents the largest property delivered in the first six months of 2023. The 397-unit property is owned by Camden Property Trust and is located in Tempe–North.