States with Double-Digit Inventory Growth on Tap
Apartment construction activity is peaking all across the U.S. But new supply is causing some states to log existing inventory growth rates north of 10%, according to year-end 2022 data from RealPage Market Analytics. While two of these states – Arizona and North Carolina – are hot spots for construction, the remaining states on this list have smaller apartment inventory to begin with. And, interestingly, there seems to be a concentration out west, with a band of states starting in Arizona and working up to Montana. On the other side of the country, Delaware is seeing the nation’s biggest new supply increase as a percentage of existing stock, with just 986 units increasing the apartment base by 13.8% in the near term. Utah is scheduled to see inventory growth of 12.5% with the addition of nearly 21,000 new apartments units. South Dakota and Montana will both grow existing inventory by about 11% with roughly 4,000 to 6,000 units under way in those states, respectively. The big story here is in Arizona and North Carolina, where big blocks of construction will increase the existing unit base by 10.4%. Back in 3rd quarter, we reported North Carolina was one of five states building nearly half of all the new apartment supply in the U.S. Since then, supply volumes in that state have increased by more than 2,000 units. And lastly, Idaho, with roughly 6,600 units under way, will see inventory growth of 10.3%.