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nationwide housing shortage has led to a surge in new apartment construction, with some cities taking the lead. According to RentCafe's annual report, over 500,000 new units are expected to be completed by the end of the year, surpassing previous records.

    The South is driving this growth, accounting for more than half of all new apartments. Texas and Florida are the main contributors, with nearly 30% of all new units coming from these two states alone. Austin, Texas tops the city-level ranking, thanks to its aggressive rezoning efforts and subsequent decline in rents.

    Streamlined approval processes and fewer regulatory hurdles have made it easier for southern states to build multifamily projects. Charlotte, North Carolina comes in second, with 12,365 new units expected to welcome young professionals, families, and remote workers who have flocked there in recent years.

    New York City's metro area takes the lead among metros, with over 30,000 units expected by the end of the year, thanks to heavy construction in Brooklyn and Manhattan. However, both New York and Dallas metros saw declines from last year, with only five of the top 20 producing metros experiencing annual growth.

    This year's decline from 2024 construction numbers is a natural cooldown after years of rapid growth, according to the report. Riverside, California stands out as an outlier, with apartment completions expected to increase by 154% this year. Meanwhile, Naples, Florida saw the biggest jump in completed units, up 275% from last year.