O
ver the last five decades, the US has undergone significant transformations driven by technological innovation, population growth, and urban development. Research platform StorageCafe analyzed U.S. real estate activity from 1980 to 2023 across six major sectors: single-family, multifamily, industrial, office, retail, and self-storage.
The analysis, dubbed the "construction Olympics," focused on the top 100 cities in the US to identify trends and shifts in development volume over the past 43 years. Data from the US Census and StorageCafe's research divisions, Commercial Edge and Yardi Matrix, revealed that single-family, multifamily, self-storage, and industrial sectors have grown since the 1980s, while retail and office construction have declined.
A notable shift has occurred, driven by urbanization, with a surge in multifamily housing, self-storage facilities, and industrial spaces. The rise of interest rates has altered the real estate landscape, forcing developers to seek unconventional funding sources and lenders to exercise caution.
Multifamily development has been the most significant growth sector, with the past decade being its best-performing period. New York City leads the country in multifamily construction, followed by Los Angeles and Houston. Texas cities have excelled across multiple sectors, driven by the tech boom, energy sector growth, and healthcare industry demands.
Self-storage facilities have experienced rapid growth, with annual completions doubling those of the 1980s. Major urban centers like New York City, Houston, and San Antonio have been at the forefront of self-storage development. The current decade is poised to be significant for self-storage inventory growth, with deliveries exceeding 64 million sf annually.
Industrial construction has seen a massive boost due to increased demand for logistics and distribution centers. Texas cities lead the country in industrial construction, followed by Phoenix, Arizona. Office space construction was at its peak in the 1980s but has been declining since, showing some resilience today. Retail construction has also declined due to reduced demand for physical retail spaces.
New York City has delivered the most office space in the US over the past half-century, followed by Houston, Atlanta, and Washington D.C. Southern and southwestern cities dominate the top 20 ranking of the nation's best cities for real estate development, with Houston consistently outperforming other cities.
