New York, Los Angeles Set for Peak Apartment Deliveries in 2025
More than half a million new apartments are scheduled to be delivered next year after the country added nearly 600,000 units in 2024. While several major markets are expected to experience peak apartment delivery next year, none come close to the increases expected in New York and Los Angeles, the nation’s two largest apartment markets, according to a RealPage analysis.
New York will nearly double its scheduled apartment supply next year, adding 34,801 units compared with 18,867 units added in 2024. That is an increase of 84.5% or nearly 16,000 units, and would represent the highest level of deliveries RealPage has ever recorded in the New York market.
A steady job market and demographic attraction for a renter-based population are driving apartment demand in the Big Apple. The city is creating jobs at the fastest rate of any market nationwide, said RealPage. The influx of new supply could help alleviate a shortfall of housing, including freeing up units at lower price points as higher-priced units deliver.
Apartment deliveries in Los Angeles are expected to grow 139%, adding 18,705 units next year compared with 7,832 in 2024, according to the analysis. Over the past five years, supply in Los Angeles has averaged about 9,300 units annually.
Like New York, Los Angeles benefits from demographic drivers, but the job market is more volatile, said RealPage. The city has only added about 17,700 jobs in the past five years, on par with Chicago but below the growth Virginia Beach has experienced, according to RealPage.
Other major markets that are expected to have apartment supply in 2025 that far exceeds 2024 levels include Anaheim (150%); Phoenix (10.4%), Newark (14.6%), Charlotte (12.4%), Boston (30%), Greensboro/Winston Salem (105%), San Diego (28.5%) and Columbus (22.2%).
Source: GlobeSt/ALM