Some 420,000 new apartments expected to be completed in cities across the United States this year, marking a 50-year high in multifamily construction, according to data from the SEO service RentCafe.
- More than 9,000 apartments are expected to be completed this year in the Raleigh-Cary metro area.
Why is it important: The new housing supply could eventually drive down rent prices, which have recently risen alongside housing prices, making it harder for people to find affordable housing, Jacob Knutson of Axios reports.
Yes, but: Despite the historic construction boom in 2021 and projections for 2022, rental prices still seem to be skyrocketing.
- This is especially true in places like Raleigh and Durham where the demand for apartments continues to rise. Rising house prices and mortgage rates have also prompted many potential buyers to shop around for apartments.
In August, Raleigh rents rose 11.9% year-over-year to a median one-bedroom rent of $1,352 per month, according to the list of apartments.
- In Durham, over the same period, rents rose 12.1% year-over-year to a median one-bedroom rate of $1,246 per month.
And after: A recent report from the Downtown Raleigh Alliance shows a pipeline of thousands of new apartments preparing to begin construction.
Go further: Downtown Raleigh is about to see another apartment boom