Top Markets for Multifamily Deliveries 2022

Rising inflation and interest rates have softened the amount of incoming multifamily stock in 2022. The record amount delivered in 2021—when 433,838 units were brought online—was always going to be tough to outdo, but few expected the drop-off to be as significant in 2022, which ended with 348,714 units delivered nationally, Yardi Matrix data shows.

By asset class, developers remained focused on the upscale Lifestyle segment, which accounted for 86 percent of units delivered nationally, while 38,591 units were in fully affordable communities.

Drilling down to the top 10 metros by number of units, we noticed that these accounted for 40 percent of deliveries, or 142,900 units. More so, the top three ranks are held by Texas markets—Dallas, Houston and Austin—and Miami with Seattle and Washington, D.C. with Phoenix were virtually on the same rank, with 13,325 and 13,301 units, and 12,357 and 12,355 units, respectively.

Rank	Metro	Units Delivered 2022	Properties Delivered 2022	2022 Unit Deliveries as % of Inventory	Construction Starts/Units 2022	Construction Starts/Properties 2022
1	Dallas	23,137	89	2.7%	27,736	109
2	Houston	18,450	71	2.6%	18,289	69
3	Austin	15,002	58	5.3%	32,863	117
4	Miami	13,325	56	3.9%	22,630	74
5	Seattle	13,301	58	4.6%	9,514	51
6	Washington, D.C.	12,357	48	2.1%	11,041	47
7	Phoenix	12,355	52	3.6%	18,487	78
8	Atlanta	11,808	56	2.3%	20,526	92
9	Denver	11,726	55	3.7%	14,156	61
10	Twin Cities	11,439	77	4.7%	6,829	40
	National	348,714	84,942	2.3%	459,897	2,168

More detailed information on each market in the ranking below.

1. Dallas

Dallas has been leading the nation in this metric for years, even though the volume of multifamily deliveries has been on a downward trend in the past years. In 2022, developers brought online 23,137 units, down from 27,132 in 2021 and 27,692 in 2020. Last year’s inventory expansion is the equivalent of 2.7 percent of stock, which places it 40 basis points ahead of the U.S. rate.

The volume of construction starts has also declined, but only slightly to 27,736 units in 109 properties in 2022 from 28,227 units in 109 properties in 2021. Moreover, Dallas ranked second in the country by volume of construction starts, behind Austin.

Just 4 percent of the units completed in 2022 were RBN apartments (1,018 units, or 0.3 percent of the segment’s inventory), 704 units of which were in fully affordable communities. The Lifestyle inventory expanded by 4.9 percent, or 22,119 units.

North Frisco/West McKinney led in the volume of deliveries with 3,290 units added to the stock; in Fort Worth, the submarket with the largest volume of units added to the inventory was Mansfield (1,958 units) and in suburban Dallas, North Cedar Hill led with 1,328 units brought online. The largest property delivered in 2022 in Dallas was Cole Park, in McKinney. Westwood Residential’s 547-unit Lifestyle asset was built with aid from a $56.6 million construction loan funded by CrossFirst Bank.

2. Houston

Last year, developers delivered 18,450 units in Houston, 2.6 percent of existing stock, trailing last year’s volume of 21,472 units, but above the 15,140 units delivered in 2020. The number of construction-starts increased in the metro, to 18,289 units in 69 communities in 2022, from 16,235 units in 67 properties the year prior.

Less than 3 percent of the units that came online last year were in RBN properties (535 units, 0.1 percent of the segment’s inventory), and 421 of these units were in fully affordable communities. The upscale segment expanded 5.4 percent, or 17,807 units.

Submarkets in the Western part of Houston led in deliveries—West End/Downtown (3,382 units) and Richmond (1,194 units). East End followed with 934 units added to the stock. West End/Downtown also houses the largest project delivered last year in the metro—The Sterling at Regent Square, a 590-unit Lifestyle property built by GID with help from a $116.1 million construction loan issued by Bank of America. The asset includes 55,000 square feet of retail space.

3. Austin

Texas’ capital, although small compared with Dallas and Houston, rounds out the top three with 15,002 units added to the multifamily inventory in 2022. The metro posts a trajectory similar to Houston’s, slightly below last year’s volume when 15,471 units came online but surpassing the 13,626 units completed in 2020. Last year’s deliveries are the equivalent of 5.3 percent of existing stock.

Austin also leads all markets in the country by volume of construction-starts, with a substantial 32,863 units in 117 properties having broken ground in 2022, from 21,179 units in 80 properties in 2021.

By asset class, 12 percent of last year’s deliveries (1,846 units accounting for 1.8 percent of the segment’s inventory) were RBN properties, of which, 1,460 units were in fully affordable communities. The 13,156 Lifestyle units completed last year account for 5.1 percent of the segment’s stock.

Deliveries surpassed the 1,000-unit mark in four submarkets—Sunset Valley (1,391 units), San Marcos/Kyle (1,256 units), Daffan (1,212 units) and Downtown–North (1,190 units). The largest project delivered last year was Avenir, a 387-unit property in Pershing, which includes 195 affordable apartments and 125,000 square feet of retail space. Owned by a joint venture formed by Quarterra Multifamily and Legend Communities, the property was built using an $85 million construction loan issued by Wells Fargo Bank.

4. Miami

Developers delivered 13,325 units in 2022, a decline from the 16,887-unit volume registered in 2021 but higher than the 11,183 units completed in 2020. Last year’s multifamily deliveries account for 3.9 percent of total stock. The number of units that broke ground in Miami increased last year, to 22,630 units in 74 properties from 19,846 units in 84 properties in 2021.

The RBN segment accounted for nearly 16 percent of last year’s deliveries, or 2,095 units, all in fully affordable communities. Overall, about half of Miami’s RBN inventory consists of fully affordable units, hence the recent expansion represents 1.2 percent growth of the RBN inventory and 2.8 percent of its fully affordable stock. The Lifestyle component gained 11,230 units, the equivalent of 6.4 percent of the segment’s total.

North Miami (845 units), Miami–Allapattah (745 units) and Miami Gardens (708 units) led stock expansion in 2022. Allapattah also houses the largest project delivered last year in the metro, the 528-unit Lantower River Landing. Owned by Lantower Residential in partnership with Urban-X Group, this Lifestyle property was built with a $38.2 million construction loan originated by Colony Capital and includes 426,000 square feet of retail space.

5. Seattle

With just 24 units less than Miami, Seattle occupies the fifth position with 13,301 units delivered in 2022, the equivalent of 4.6 percent of total stock, which places the metro on the third rank in the nation by percentage of inventory, trailing Austin and the Twin Cities. The metro displays a different pattern by multifamily deliveries, maintaining an upward trend since 2020 (8,677 units) and 10,876 units completed in 2021.

The RBN segment accounted for a solid 23 percent of last year’s deliveries, or 3,102 units, which represents 2.1 percent of the segment’s total. Of these, 2,786 were units in fully affordable communities.

Belltown (2,499 units) and University (1,196 units) were the two submarkets in Seattle with deliveries above the 1,000-unit mark, and the former houses the largest project delivered last year in the metro, the 798-unit Onni South Lake Union. Owned by Onni Real Estate, the property includes 28,090 square feet of retail space.

6. Washington, D.C.

In Washington, D.C., developers brought online 12,357 units in 2022, which equates to 2.1 percent of the existing stock. Last year’s volume trailed 2021’s figure, when 14,696 units came online, and was just slightly below 2020’s 12,657-unit volume. Like Seattle, the number of construction-starts declined last year, with just 11,041 units in 47 properties breaking ground compared with 15,548 units in 56 properties recorded in 2021.

Nearly 11 percent of last year’s deliveries were RBN units—1,320 units, which represent 0.4 percent of the segment’s inventory—and 1,243 units were in fully affordable communities. The remaining percentage, or 11,037 units, were Lifestyle apartments, which represent 4.5 percent of the segment’s stock.

In two submarkets, deliveries surpassed the 1,000-unit mark—Barry Farms/Saint Elizabeth’s (2,055 units) and Brentwood/Trinidad/Woodridge (1,613 units). The latter houses the largest project delivered last year, the 818-unit Crossing DC. Tishman Speyer’s asset includes 44,000 square feet of retail space and was built with aid from a $122 million construction loan originated by Wells Fargo Bank. Currently, the asset holds four $24.5 million construction loans, all issued by Wells Fargo Bank.

7. Phoenix

Just two units short of Washington, D.C.’s volume, Phoenix deliveries amounted to 12,355 units in 2022, the equivalent of 3.6 percent of total stock. Similar to Seattle, multifamily deliveries increased progressively from 2020 onward—9,090 units in 2020 and 10,734 units in 2021. Yet, last year the number of construction-starts declined to 18,487 units in 78 properties from 19,553 units in 85 properties in 2021.

RBN units accounted for 14 percent of last year’s deliveries, and those 1,739 units represent 1.1 percent of the segment’s stock. Of these, just 604 units were in fully affordable communities. The Lifestyle segment expanded 5.9 percent, or by 10,616 units.

In four submarkets, deliveries rose above the 1,000-unit threshold. Downtown Phoenix (2,792 units) and Gilbert (2,263 units) led by volume. The latter houses the largest project delivered last year in the metro, the 408-unit The Crossing at Cooley Station. Management Support’s asset was built with a $49 million construction loan issued by Wells Fargo Bank.

8. Atlanta

Atlanta’s multifamily inventory gained 11,808 units in 2022, trailing the volumes registered in 2021 (15,849 units) and 2020 (12,417 units). The figure represents 2.3 percent of total stock. This downward trend is likely to change, as 20,526 units in 92 properties broke ground last year, above the 18,483 units in 77 properties recorded in 2021.

A consistent 20 percent of last year’s deliveries were RBN units (2,388 units, or 1.2 percent of the segment’s inventory), and 1,485 units were in fully affordable communities. The remaining 9,420 units were upscale apartments, accounting for 3 percent of the segment’s stock.

Buford (1,195 units) and Chandler-McAfee/West Belvedere Park (1,003 units) led in deliveries. The largest project delivered in Atlanta last year was the partially affordable 623-unit The Lofts at Twenty25 in the South Buckhead submarket (200 units are affordable). Westside Capital Group acquired it from Varden Capital Properties for $136 million, or $218,299 per unit, with aid from a $104.5 million loan originated by Harbor Group International.

9. Denver

Developers delivered 11,726 units in Denver in 2022, above last year’s multifamily volume, but trailing 2020’s figure. This metro is the only one in this ranking where the unit volume delivered in 2021 (9,498 units) was the lowest of all three years (in 2020, 14,562 units came online here). Last year’s deliveries represented 3.7 percent of the existing stock. Although deliveries increased, the number of construction-starts declined, to 14,156 units in 61 properties in 2022, from 16,514 in 84 properties in 2021.

About 13 percent of the units that came online last year were in RBN properties—all in fully affordable communities—expanding the segment’s inventory in the metro by 1.1 percent. The Lifestyle segment (10,145 units) increased by 6 percent.

The top four submarkets for deliveries accounted for nearly half of the units that were brought online last year, led by SBD/Five Points/North Capitol Hill (1,907 units) and Westminster (1,272 units). The former also houses the largest project delivered in 2022, the 417-unit DriveTrain. A Carmel Partners asset, the mixed-use property was built with a $97 million construction loan issued by Massachusetts Mutual Life Insurance Company and includes 11,486 square feet of retail space.

10. Twin Cities

Developers added 11,439 units to Twin Cities’ multifamily inventory in 2022, the equivalent of 4.7 percent of the existing stock, which places it second in the country, behind Austin. Similar to Phoenix and Seattle, the metro’s delivery volume increased gradually from 2020 onward: in 2020, 8,976 units came online, and in 2021, 10,404 units. However, the number of construction-starts dropped to 6,829 units in 40 properties last year, from 10,378 units in 71 properties in 2021.

RBN units accounted for almost 18 percent of last year’s deliveries, or 2,028 units, a volume that also represents a 1.3 percent expansion of the segment’s stock. Of these, 1,939 units were in fully affordable communities. Twin Cities’ Lifestyle inventory expanded by 9,411 units, 10.4 percent of the segment’s stock.

Minneapolis–Central (878 units) and West St. Paul (808 units) posted the largest inventory expansions. The largest project delivered last year in the metro was Xenia, Richdale Group’s 379-unit property located in the Golden Valley submarket.