Report: Bay Area sees mixed levels of apartment construction

The Bay Area didn't make the top metros for new construction in the U.S. this year, according to RentCafe’s annual Apartment Construction Report. 

Despite being the second largest apartment builder in California, the San Francisco metro area landed at #25 in the national rankings, while San Jose was #33. 

Apartment construction in the U.S. will reach a historic high of over 500,000 new units expected to hit the market by the end of 2024. California is the fourth-largest contributor to this boom, with 29,880 apartments underway — matching the volume forecasted for the Dallas metro area. 

Among the report's highlights on the apartment construction across the region: 

• In 2024, nearly 17% of the new apartments in California are set for completion in the San Francisco metro area, with a projected 5,078 rentals coming online. 
• San Jose metro’s output to the state’s housing supply totals 3,384 units, which accounts for 11% of California’s new apartment construction this year.  
• Oakland is anticipated to deliver 1,280 units this year, with the cities of San Francisco and Santa Clara each on track to see about 1,100 new rentals. San Jose, on the other hand, has a lower construction volume of only 854 units. 
• Parts of the Bay Area are projected to experience a slowdown in apartment construction over the next five years: The San Jose metro area will build 4,000 fewer units compared to the 19,000 rentals added from 2019 to 2023. San Francisco metro's decline is even sharper, marking the 8th biggest decrease nationwide: The area will build 12,330 fewer apartments compared to the 38,000 units it added between 2019 and 2023.  
• Where in in the Bay Area is construction speeding up in the next 5 years? Santa Rosa is set to add 2,800 more rentals between 2024 and 2028. 

See the complete report here: 
https://www.rentcafe.com/blog/rental-market/market-snapshots/new-apartment-construction/