After the housing market inventory decreased across the board last year, the multifamily market is projected to rebound in 2020.
According to a new report from RealPage, this year will see a nearly 30-year record for new supply in the nation’s 150 largest apartment markets. Over 370,000 units are projected to enter the multifamily market in 2020.
In seven out of the nation’s 100 smaller apartment markets, which have between 22,000 and 100,000 units, new supply is expected to increase by more than 1,000 units over 2019’s volume.
Despite Yardi Matrix saying the labor shortages will also impact multifamily housing as it has single-family housing, markets of all sizes are anticipated to grow.
Out of the seven smaller markets expected to see a spike in new supply, four of them are in Florida.
Palm Bay; Deltona-Daytona Beach; North Port-Sarasota-Bradenton and Cape Coral-Fort Myers, Florida are anticipated to receive 2,234, 3,000, 1,700 and 3,000 new units, respectively.
Wilmington, North Carolina will also see a sizable amount of units arriving this year, with an estimated 1,400 units expected to be delivered.
For the last five years, Louisville, Kentucky has averaged about 1,500 new units annually but will be doubling that amount this year. Considered one of the bigger “small markets” with about 88,000 existing units, the expected new units will grow total inventory by 3.5%.
In terms of larger markets, Los Angeles is slated to see the most dramatic supply hike this year.