Construction of new apartments across America has slipped below the 10‑year average for the first time in four years, with the Northeast bucking the trend.
National Decline
A November 2 analysis by RentCafe reports a 27% drop in expected new units this year, falling to 442,395 from 605,768 in 2023 and dropping below the 10‑year average of nearly 466,000.
Senior analyst Doug Ressler of Yardi Matrix warned that the shrinking pipeline will limit completions in 2026‑2027.
Regional Shifts
The Northeast will add 79,426 new rentals, led by 38,825 units in the New York City metro area, where strong rent growth and years of underbuilding have spurred activity despite strict regulations and high costs, according to RentCafe.
The Northeast now accounts for roughly 18% of national new‑apartment construction, outpacing the Midwest’s projected 12% share and its 53,484 units.
The South remains the largest source, delivering 47% of the 2025 total—208,085 units—driven by Florida (56,394) and Texas (50,392), with North Carolina and Georgia also ranking among top states, thanks to population and employment growth, abundant land and fewer regulatory hurdles, RentCafe said.
The West is set to add 101,400 units, or 23% of the national total, with California contributing 38,201 apartments, the report noted.
Outlook
RentCafe predicts the Northeast could continue dominating new multi‑family construction in 2027 as the national pipeline stays constrained.
