Demand for apartments is growing in most cities across the country, so it is no surprise that apartment construction is also on the rise.
According to data from Yardi Matrix and Rent Café, apartment construction has reached a 20-year high. In 2017, more than 345,000 apartment completions are expected, a 21 percent increase compared to 2016, which saw 285,000 units constructed.
Between 1997 and 2006, annual completions averaged 212,740 units. Once the market began to rebound in 2012, new supply accounted for 237,000 units in 2014.
“Lifestyle changes, a housing-stock shortage and high homes prices have led to more people than ever – of all ages – choosing to rent an apartment rather than buy a home,” said Doug Ressler, senior analyst at Yardi Matrix.
Chicago is estimated to have the 11th highest number of apartments completed with 7,792 units, which may be due to job growth in the city increasing by nearly 1 percent. Rent Café found that apartments in the city average $1,410 in rent.
“With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees, and free gym memberships,” said Ressler.