Top 10 Markets for Multifamily Deliveries in 2023

More than 165,000 units came online in these metros last year.

Supply growth nationwide reached a decade-long peak, with more than 1.2 million units under construction, Yardi Matrix data shows. Multifamily deliveries remained strong in 2023, despite economic headwinds. This year, tighter lending circumstances and rising material, maintenance and labor costs will impact new construction starts, but the supply pipeline remains strong. Roughly 500,000 units are bound to come online in 2024, with markets in the South and West likely to stay at the top. To see how these trends evolved last year, we’ve compiled a list of the top markets for multifamily deliveries, leveraging Yardi Matrix data.

Key takeaways:

  • These metros saw a total of 165,038 units come online in 2023
  • Three Texas metros made the ranking
  • Deliveries for this year are projected to remain on par with 2023
  • Six metros saw more projects break ground year-over-year

1. Dallas

Dallas-Fort Worth had the largest number of new units to come online in 2023, 24,303. This meant a 5.2 percent expansion of its existing stock, double the 2.6 percent national rate. The Metroplex maintained its strong momentum, but supply followed the overall softening trend, as the previous two years saw more units come online—24,734 in 2022 and 28,694 in 2021.

Dallas also ranked first in terms of development among these 10 metros, with 73,752 units under construction across 273 properties as of January. Nearly 90 percent of these were in upscale, Lifestyle properties. Tighter lending circumstances led to new starts slowing down, with some exceptions. Dallas-Fort Worth saw a total of 36,122 units break ground in 2023, up 15.8 percent from the previous year.

The largest property completed in 2023 in the Metroplex was the 672-unit Shannon Creek, developed by Gold Creek Homes. Situated in Fort Worth’s Burleson submarket, it features units ranging in size between 650 and 1,142 square feet.

Yardi Matrix expects Dallas-Fort Worth to maintain its strong position should market conditions hold, with 39,000 units projected to come online in 2024.

2. Atlanta

Atlanta’s inventory expanded 4.5 percent in 2023, which amounted to 21,007 units coming online across 94 properties. Completions increased 53.7 percent year-over-year. The metro’s relative affordability continued to attract residents and kept demand at a good level despite economic hurdles.

Atlanta’s suburban submarkets encompassed 62.4 percent of the total amount of units delivered, as growth was focused on these areas and followed migration patterns. As of January, the metro had 40,741 units underway across 159 projects, with the amount equally split between suburban and urban submarkets.

Developers broke ground on 20,234 units across 73 properties last year, which was 14.4 percent more year-over-year. Should market conditions hold, Yardi Matrix expects some 19,610 units to come online in the metro this year.

One of the largest projects to start construction last year was Oak Grove Vista, located in McDonough, Ga. In December, a joint venture of Atlantic American Partners, Township Capital and Vista Residential Partners broke ground on the first phase. The project is set to encompass a total of 348 units and 40,000 square feet of retail on a 33-acre site.

3. Phoenix

Rounding out the top three metros was Phoenix, which added 17,189 units to its inventory last year, representing a 3.7 percent expansion of stock. Although Phoenix’s fundamentals were impacted by the slowing economy, it was one of the few metros where completions increased year-over-year—by 38.1 percent. The largest property to be delivered last year in Phoenix was the 476-unit Acero Queen Creek, developed by IDM Cos.

A total of 73 properties, encompassing 19,561 units, broke ground in 2023. This was an increase from the 65 projects and 16,335 units that started construction in 2022. The metro had a total of 43,800 units in the works across 170 properties, of which 91.8 percent were in the Lifestyle segment.

Deliveries are projected to remain strong in 2024 as well. Yardi Matrix expects roughly 17,700 units will come online this year in Phoenix.

Last year, Dominium started work on Arizona’s largest affordable development to date. Two adjacent properties—the 396-unit Estrella Springs and the 261-unit Suncrest Vista at Canyon Trails—are taking shape in Goodyear, Ariz.

4. Miami

Metro Miami developers brought 17,098 units online in 2023, which represented a 3.7 percent expansion of the inventory. South Florida’s fundamentals began to trend downward in the fourth quarter of last year after two years of outstanding performance, but supply kept a solid pace—completions in 2023 were above the 12,445-unit total of 2022, as well as the 10,734 units recorded in 2021.

A total of 19,667 units broke ground in metro Miami in 2023, which was only slightly below the 20,320 that started construction the previous year. There were 45,966 units, in 158 projects, underway across the metro as of January, with the forecast remaining positive for now. Yardi Matrix expects Miami’s inventory to expand by roughly 22,800 units this year.

Developers in Miami continued to focus on the upscale segment, with these projects landing significant financing deals. A recent example includes the $600 million construction loan secured by Mast Capital for the upcoming Cipriani Residences—a 397-unit luxury property bound to come online in 2028.

5. Houston

Houston clocked in at number five in the ranking. The metro’s inventory grew by 16,868 units, or a 3.6 percent expansion of existing stock. In line with other major cities, Houston saw its fundamentals trend down toward historical averages, largely withstanding economic headwinds.

Houston had 37,622 units under construction across 150 properties as of January. Yardi Matrix expects 21,000 units to come online this year, should conditions remain relatively favorable.

Developers broke ground on 17,878 units in 2023, with the majority of these within Houston’s Western submarkets. Starts were up 16.0 percent year-over-year, but it is likely that this momentum will subside through 2024.

6. Austin

Texas’ capital rounded out the three entries from the Lone Star state. Austin’s growth continued to shine, with developers bringing 16,523 units online in 2023, representing a 3.5 percent expansion. Although completions were down from 2022’s 17,172 total, they were above the mount recorded in 2021—15,286 units.

The largest property completed in 2023 was JEM Holdings’ The Parker, in Pflugerville, Texas. The developer refinanced the 504-unit asset with a $65.5 million loan upon its completion, provided by Guardian Life Insurance Co.

Austin also took the second spot for total number of units under construction—60,671 in 212 projects, as of January. Yardi Matrix forecasts roughly 26,000 units will come online across the metro this year.

Construction starts amounted to 19,909 units in 2023, across 74 projects. This was nearly 10,000 units less than the amount recorded in 2022 in the metro, as tighter lending requirements have put many plans on hold.

7. Washington, D.C.

Washington, D.C., developers completed 14,538 units last year, earning it the seventh spot on the list. This represented a 3.1 percent expansion of stock, 50 basis points ahead of the U.S. Compared to the previous two years, the metro remained relatively on par—2022 recorded 15,492 units completed and 2021 saw 14,312 come online.

In 2023, 52 projects broke ground, encompassing 13,480 units, which was 14.7 percent less year-over-year. Washington, D.C., still had 34,787 units underway as of January, with roughly 12,000 projected to come online this year.

Stonebridge Associates and Creek Lane Capital finished the largest project that came online in 2023—the Dylan & Reese towers at Carlyle Crossing, comprising 591 units in Alexandria, Va. In September, Stonebridge broke ground on Oakville, also in Alexandria, planned to include 572 rental units and 84 luxury townhomes.

8. Orlando, Fla.

Taking the eighth spot among the top markets for multifamily deliveries, Orlando had 13,351 units come online last year, across 53 projects. The metro’s inventory expanded by 2.9 percent, 30 basis points above the national figure. Completions nearly doubled from 2022—which recorded 7,602 units—but were below 2021’s 15,072 figure.

Developers started work on 61 projects in 2023, encompassing 14,554 units, only slightly above the 13,175 units that broke ground the previous year.

Orlando consistently remained a top performer among Sun Belt markets, but the economic slowdown left its mark in the second half of last year. The metro had 32,144 units under construction as of January, with Yardi Matrix forecasting Orlando to add roughly 11,200 units this year, which would be only a slight decline from the norm.

9. Los Angeles

Los Angeles developers completed 84 properties last year, totaling 12,304 units, or a 2.6 percent expansion of stock—on par with the nation. Completions were up from 2022’s 10,120 units and on par with the 12,914 units recorded in 2021.

A total of 10,802 units broke ground last year across Los Angeles, with the core metro submarkets recording the bulk of these. Construction starts were down 17.2 percent year-over-year. There were 31,774 units under construction across the metro, with Yardi Matrix expecting 2024 completions to reach approximately 11,000 units.

American Commercial Equities broke ground on the largest property underway in September last year. Located at 5420 Sunset Blvd., the property is planned to encompass 735 units and 95,000 square feet of retail. Completion is set for 2026.

10. New Jersey

The Garden State rounded off the top 10 list. A total of 67 properties came online in New Jersey last year, encompassing 11,857 units. This represented a 2.5 percent expansion of existing stock, just 10 basis points below the U.S. Northern New Jersey recorded the bulk of these deliveries.

The largest asset that came online last year in the market was the 376-unit Vermella Woodbridge. Russo Development completed this first phase of its mixed-use project in the Woodbridge-East submarket with help from a $67.5 million construction loan from U.S. Bank. The developer is currently working on the retail portion of the project, planned to encompass 18,000 square feet, as well as an additional 125 luxury units on a nearby parcel.

A total of 69 projects, encompassing 14,753 units broke ground last year, which was down 11.1 percent year-over-year. The metro had 39,374 units under construction as of January, of which around 14,000 are expected to come online this year, should market conditions remain steady.

An earlier version of this article incorrectly stated that Woodmont Properties' Woodmont at West Windsor was the largest property delivered in New Jersey in 2023.

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