Houston should rank as the nation’s leader for new apartment deliveries in 2015. The metro is set to add 19,662 units. This info was highlighted in a recent Multifamily Executive article that featured data from MPF Research.
Digging deeper into the story of the new supply volumes scheduled for next year, there will be quite a bit of movement on the leaderboard by metro. Houston, Dallas and New York all leapfrog Washington, DC, which is on track to rank as 2014’s No. 1 market for deliveries. While next year’s scheduled new supply in metro Washington, DC – 10,875 units – remains above the metro’s long-term norm in building activity, that 2015 tally marks a slowdown in deliveries of 43% relative to 2014’s completion volume.
Los Angeles is another spot that will add notably fewer apartments in 2015 than in 2014, while still remaining near the top among the country’s key construction centers. Next year’s targeted deliveries of 7,017 units in Los Angeles will drop 31% from this year’s scheduled completions.
Newcomers on the list for delivery leaders in 2015 are Phoenix, Atlanta and Boston. Phoenix will experience the biggest spike in product deliveries, with 2015 completions set to top the 2014 total by a whopping 68%.
Absent from 2015’s delivery leaders are 2014 hot spots Raleigh-Durham, Austin, and Charlotte. Compared to 2014 additions, the completions scheduled for next year backtrack 59% in Raleigh-Durham, 58% in Austin, and 38% in Charlotte.
All of these calculations assume that the giant block of more than 90,000 apartments, across the country’s 100 largest metros, are completed during 2014’s fourth quarter as scheduled. In actuality, delays in deliveries that have been persistent throughout this construction cycle are likely to continue, bringing down 2014’s completion volume a bit but then slightly pushing up 2015’s new supply.