Real Estate News - August 2025

US apartment construction has hit a decade low

US apartment construction has plummeted to its lowest level in nearly a decade, with volumes dipping to approximately 542,800 units. This significant decline marks a sharp drop from the record high of 1.1 million units in Q1 2023.

Key Trends:

• Sharp Decline: The past year saw a 37% year-over-year decline in apartment construction, with nearly 320,000 fewer units underway.Sharp Decline: The past year saw a 37% year-over-year decline in apartment construction, with nearly 320,000 fewer units underway.
• Markets Affected: Cities experiencing the most significant declines include: 
  • Austin: Down to 18,000 units under construction, less than half of its volume from the previous year.
  • Phoenix: 35.4% decline in construction volume.
  • Atlanta: Significant slowdown.
  • Dallas: Notable decrease.
  • New York: Experiencing a substantial decline.

Key Trends:

• Tighter financing options
• Slower rent growth
• Reduced developer confidence

Potential Impact:

If the slowdown in construction continues, the supply of new apartments will decrease, potentially shifting market power toward landlords in the coming years.