T
he US is on track for a record-breaking year in apartment construction, with 518,108 rental units expected to be completed by the end of 2024. This surge in supply will help temper price increases for both apartments and houses, according to experts. The Sun Belt region is driving this trend, with cities like Dallas and Austin seeing a huge influx of new apartments.

    The increased availability of apartments will make renting more attractive, potentially softening demand for homebuying and pushing housing prices lower. As Laurie Goodman from the Housing Finance Policy Center at the Urban Institute notes, "Supply is good no matter what form it takes." The Sun Belt's ease of building and permitting has contributed to its high apartment construction rates.

    Dallas and Austin are among the top cities for new-apartment construction this year, with 10% of all new apartments coming to market nationwide. In Austin, median rent prices have fallen by 8.4% year-over-year, according to Zillow data. However, experts warn that lower prices won't last long, as builders have already begun to pull back on new permits and construction starts.

    A Harvard study suggests that subdued rent growth will not be sustainable in the long term, with new construction starts dropping rapidly and financial conditions becoming increasingly restrictive for multifamily development projects.