Originally published on September 6, 2024, by Veronica Grecu for NAIOP.

In 2024, the U.S. is set to achieve a new milestone in apartment construction: For the first time in history, the number of apartments completed in one year is anticipated to surpass the 500,000-unit mark. Developers are on track to complete over 518,000 rental units, which marks a significant 9% increase compared to 2023 and a 30% rise from 2022.

The New York metro area leads the nation in new apartment construction in 2024, followed by Dallas and Austin. Together, these three metros are expected to account for about 10% of all new apartments nationwide by the end of the year.

Looking ahead, developers plan to bring 2 million new apartments online by 2028, despite facing uncertainties in many markets. Approximately 47% of the 369 metro areas analyzed are projected to build more apartments in the next five years than they did between 2019 and 2023.

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Originally published on August 24, 2024, by Veronica Grecu for NAIOP.

In 2023, the trend of transforming buildings into apartments saw a significant revival, nearing the peak levels of 2019 and 2020, as developers responded swiftly to the increased demand for housing after a two-year slowdown.

This resurgence resulted in 12,713 new apartments, marking a substantial 17.6% increase from the previous year. The momentum for adaptive reuse is expected to continue, with an estimated 151,000 rental apartments currently being converted, including 58,000 from former office spaces.

While office spaces are popular for future projects, hotel conversions dominated last year’s adaptive reuse landscape: A record 4,556 apartments emerged from repurposed hotels in 2023 alone, a 38.8% increase from the previous year and nearly double the output in 2021. This surge in hotel conversions is the most significant since 2016, with 3,061 apartments created.

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Originally published on July 16, 2024, by Alexandra Both for NAIOP.

The popularity of new homes built for the purpose of renting is peaking. Two drivers behind this boom are the rise of remote work and millennials reaching prime homebuying age while facing challenges in purchasing property.

But which areas have contributed the most to this growth? To answer this question, and to map out the future of this niche market, RentCafe.com analyzed Yardi Matrix data on single-family homes for rent in professionally managed communities.

In 2023, a record-breaking 27,500 build-to-rent homes opened their doors, up 75% compared to the year prior. Lifestyle changes in the aftermath of the COVID-19 pandemic led to new peaks each year, culminating this past year.

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The Town of Matthews has initiated an effort to curb Short Term Rentals (STRs) through the introduction of a text amendment to its Unified Development Ordinance (UDO).  Text Amendment 2024-2 does the following:

• STRs would be required to be separated from each other by a minimum of 800 feet, measured from property lines.
• They would be required to have a zoning permit and the permit would need to be posted publicly.
• Renters would not be allowed to hold special events or gatherings.
• A local manager or operator would be required to be located in or adjacent to Mecklenburg County.

During recent Commissioner meetings, several residents spoke in favor of imposing these restrictions but based on information provided by the Town, it is unclear how significant a concern this is to the vast majority of the population.  A review of the minutes of recent meetings indicates there have been a total of ten calls to the police related to STRs during the past three and a half years.  Of those, five were initiated by the STR owners and the other five came from area homeowners.  According to Town Staff, there are currently somewhere between 20 and 40 STR properties located within the Town of Matthews where the current population stands at over 30,000.

The public hearing on the text amendment began last night and has been extended to August 12th (STR conversation runs from 2:50:36 through 4:51:40).  Look for more updates and opportunities for engagement on this topic very shortly.    

Originally published on September 5, 2023, by Matthew Preston for NAIOP.

The diverse Gen Z generation has a wide range of priorities when it comes to choosing a city to live in. Some value affordability while others prioritize education and employment prospects. Still others are looking for a city with abundant recreational activities.

To help Gen Zers identify cities that align with their priorities, CommercialCafe analyzed major U.S. cities across a variety of key metrics. These included the Gen Z population share, educational attainment, affordability, eco-friendly commuting and park density. The results of this analysis created a comprehensive guide for Gen Zers who are looking for a city that values community, cost-effectiveness and sustainability.

MINNEAPOLIS TAKES LEAD AS ULTIMATE CITY FOR GEN Z

Minneapolis is the top city for Gen Z in 2023, and in fact, it already boasts a strong Gen Z population (roughly 10% of residents belong to this demographic) and attracts many others within this age group. Additionally, more than half of its Gen Z inhabitants are enrolled in post-secondary educational pursuits, making Minneapolis an attractive destination for young professionals to chase their career goals. Similarly, a low unemployment rate of 2.6% presents promising job prospects. Finally, the city’s budget-friendly subscriptions to high-speed internet access are especially appealing to the digital nomad types from this age group. 

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