More than a half million new apartments will open across the U.S. by the end of 2025, according to a new report by RentCafe.
Despite falling below last year’s new apartment totals, the data showed construction is still higher than annual averages over the past decade.
Regionally, the South will build more than half (52.5%) of all new apartments in 2025, with the units added in Texas and Florida alone projected to make up 30% of all new construction in the U.S.
“The South has consistently seen the highest in-migration of any U.S. region since at least 2015, with more people moving in than moving out,” RentCafe said in the study. “Leading this trend are metro areas like Austin, TX; Phoenix; San Antonio; and Fort Myers, FL, which saw some of the nation’s fastest population growth rates from 2020 to 2021.”
Other key takeaways…
- U.S. new apartment construction remains strong in 2025 with more than 500,000 units expected this year. That’s below last year’s numbers but still higher than annual averages since 2015.
- Driven by growing population, more than 50% of this year’s new apartment developments are concentrated in the South.
- Thriving Texas metros — like Dallas, Austin and Houston — are leading the apartment-building boom in the region.
- New York metro leads again in apartment deliveries, edging out Dallas by 1,000+ units — yet, it’s Austin, TX that steals the spotlight at the city level.
- Naples, FL, almost quadruples its apartment completions in one year, while Chicagoland sees the steepest drop in deliveries (-60.4%).
Meanwhile, the rental insurance market is predicted to reach $100.99 billion in 2025, driven by an increasing trend of urbanization, growing awareness about the benefits of renters’ insurance, high incidences of property damage, growing supply of rental properties and legal requirements.
By 2029, the market is expected to reach $128.73 billion at a compound annual growth rate (CAGR) of 6.3%.
The slideshow above illustrates the top U.S. metros for apartment construction as selected by RentCafe.
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