America Set For 50-Year Apartment Boom, Housing Economist Jay Parsons Says

Amid a persistent housing shortage, the U.S. is seeing an unexpected surge in apartment construction, with new units being built at a pace not seen in 50 years. The boom, experts say, could reshape the rental landscape for decades.

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"It’s only the midpoint of 2024, and yet apartment developers have built more units so far this year than they did in any year between 2001-2013, with 284k units completed," Jay Parsons, a Texas-based rental housing economist, said on X on Tuesday. "By the end of 2024, apartment completions could approach 600k units for the first time since 1974."

The surge in construction comes as welcome news to many renters who have struggled with soaring prices in recent years. Yet the boom also raises questions about affordability and the long-term impact on America’s housing market.

The news is bittersweet for Sarah Johnson, a 32-year-old graphic designer in Austin. "I’ve been priced out of my neighborhood twice in the last three years," she told Benzinga. "More apartments sound great, but will I actually be able to afford them?"

Johnson’s concern underscores a broader worry among housing advocates. While the influx of new units has begun to cool rent growth — Redfin reports that median asking rents rose just 0.8% in May compared to a year earlier — many new apartments cater to the high end of the market.

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A 2024 study by Harvard’s Joint Center for Housing Studies found that roughly half the 22.4 million rent-burdened Americans spend more than 50% of their income on housing. Despite the construction boom, the supply of low-rent units continues to shrink.

"We’re building at a pace we haven’t seen in generations, but we’re still playing catch-up," said Michael Roberts, a housing counselor in Chicago. "The question isn’t just how many units we’re building, but who can afford them."

The nation’s renter population has grown since the 1970s, the last time apartment construction reached current levels. The shift and years of underbuilding have created a backlog of housing needs that even the current boom may struggle to satisfy.

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For his part, Parsons sees the current construction wave as a potentially once-in-a-lifetime event. "Take it all in now because many of us may never see numbers like this again in our lifetimes (barring massive policy changes, etc.)," he tweeted.

The impact of the apartment boom remains to be seen. For millions of renters, the hope is that more supply will eventually translate into more affordable options. But for now, many remain caught between the promise of new construction and the reality of persistent affordability challenges.

Back in Austin, Johnson is cautiously optimistic. "I’m holding out hope that some of these new apartments will be within reach," she said to Benzinga.

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