RENTCafé has released its annual report on apartment construction, in which it analyzed the numbers in 134 metro areas.
Despite the strong demand for rentals, 2019 marks the second year of slowdown in terms of apartment construction nationwide. The Bay Area goes against this trend, as metro areas saw an increase in apartment construction. However, the level of new units is still well below that of other large US metros.
Here are some of the findings:
- With housing prices on the rise, Oakland outpaced San Francisco by about 650 apartment units.
- This year, RENTCafé expects San Jose will add at least 2,300 units, making it the regional leader for multifamily construction. Because of a considerable number of units in Milpitas, Mountain View and Sunnyvale, Metro San Jose managed to boost its apartment construction by 283%, from 1,579 units in 2018 to 6,044 this year.
- Pressured by a strong demand for rentals in the East Bay, the rental market in Fremont might get some relief thanks to the 880 new apartments projected to come online by the end of this year.
- Despite this year's increase in apartment construction, both Metro San Francisco and Metro San Jose are expected to deliver less than half of the units built by the metro areas of either Seattle, New York, or Miami.
You can find the report as well as more details at a market level at: https://www.rentcafe.com/blog/rental-market/apartment-construction-2019.