Downtown apartment construction has been flourishing all across the U.S. over the last decade, in response to people’s changing attitudes and lifestyle preferences, according to a new report released this week by StorageCafe.
StorageCafe’s downtown apartment construction report looked at the downtown areas of the country’s 100 largest cities and ranked them based on the number of multifamily units delivered over the past 10 years. Overall, across the 100 cities analyzed, about 391K downtown apartments were built from 2013 to present day, representing 37% of the total inventory of multifamily units in those areas.
Key highlights:
- By sheer numbers, Atlanta, Georgia, ranks first for apartments built in a downtown area over the past 10 years, with over 21,500 apartments added to the local inventory.
- Los Angeles ranks second nationally for the number of apartments built in its downtown area over the past decade, over 19K, representing about 46% of the total inventory.
- Southern cities work hard to see their downtown areas grow; in Nashville, Temnesse, St. Petersburg, Florida, and Phoenix, Arizona, housing in 50+ unit buildings built between 2013 and 2021 represents more than 70% of the large-scale apartment inventory.
- Jersey City is the downtown multifamily construction champion of the East Coast, ranking 8th nationally with over 10K apartments built from 2013 to 2022 in its downtown area, representing 60% of the total inventory.
- Downtown apartment construction is a catalyst for self storage development: Atlanta and Houston rank No. 1 and No. 3 for new apartments, and No. 1 and No. 2 for new self storage space.
Major takeaway:
Doug Ressler, business intelligence manager at Yardi Matrix, said that, “The massive shifts in housing preferences we’ve witnessed in relation to the health crisis are still bound to have ripple effects for years to come. The hybrid or remote working trend, for one, has created a context for a reversed type of migration – it’s not just the employees following available jobs and housing options anymore, but jobs and new construction coming to places where people want to live. Places like Atlanta and Houston, which have long attracted workers with in-demand skills, have turned their urban cores into vibrant environments where residents can work, live and have easy access to after-work entertainment.”
“The cost of single-family homes is outpacing wage increases across the country, which means that buying is less affordable for many Americans,” continued Ressler. “Considering the affordability issue, multifamily properties present a far more appealing alternative, especially for busy professionals who seek both comfort and convenience in their housing choices. The compromise on space, which often accompanies urban living, is easily addressed today as self storage is widely available in most locations. The self storage industry now counts over $1.6B of storage space nationwide.”
For the full report, click here.
