By the end of this year, 321,177 new apartment units will hit the market, a 50 percent increase compared with new apartment deliveries in 2015, according to data from RentCafé. The 214,108 new apartment units that came online in 2015 had been the largest yearly total in the past decade.
Houston and Dallas will see the most new apartment units hit their markets in 2016, with 25,935 and 23,159 units, respectively. New York City (21,177 units), Los Angeles (20,205 units) and Washington, D.C. (18,027 units), round out the top five markets for new construction.
Texas as a whole will deliver 22 percent of the estimated inventory increase for the top 50 metropolitan areas, as Austin and San Antonio are also hot markets for new construction.
One-bedroom units account for 51 percent of new construction in 2016, followed by two-bedroom units (37.5 percent), three-bedroom units (6.8 percent) and studios (4.7 percent).
New apartment supply is slowing rent growth, which is projected to be at 4.4 percent at the end of 2016, down from the peak 6.3 percent in 2014.