North Carolia Construction Report staff writer
A recent report from RentCafe.com shows the Raleigh-metro area will hit a five-year construction high this year with more than 9,100 new apartment units to be completed in the area.
According to the report, the city will record a 106 percent increase this year, over the number of apartment units built in 2021.
With 420,000 new rental units projected to be completed this year across the U.S., apartment construction across the U.S., multifamily construction is at a historic, 50-year peak.
“This construction boom is driven by pent-up demand for apartments nationwide, especially as some renters postpone their dream to become homeowners amid soaring inflation and rising interest rates,” the rentcafe report stated.
Nationwide, the New York metro is at the top, after dealing with a serious lack of available units for several years. A combination of rising interest rates, lack of available units and growing need for more living space have left would-be homebuyers continuing to rent, the report concluded.
“As a consequence, New York developers have upped their game and the metro is on track to see the highest number of units delivered in the last five years.”
Miami is in second spot, with the existing supply of rentals unable to keep up with sky-high demand. Here, too, developers have plunged into a building frenzy that’s set to culminate in record-breaking numbers in 2022 compared to the area’s completions in the last few years.
The North Carolina report says the following numbers are expected to be completed by the end of 2022:
- Raleigh: 5,144
- Wake Forest: 894
- Cary: 580
- Holly Springs: 487
- Morrisville: 418
Raleigh is one of five metro areas in the U.S. forecast to reach a five-year high, along with Phoenix, Seattle, Orlando, Nashville, Portland and Tampa.
RentCafe considered properties that had a certificate of occupancy issued between Jan. 1 and June 30 to estimate apartments expected to be completed this year.