In part 2 of our list of the top markets for multi-family construction, we identify the top 5 entries in this ranking.
Our results showed that only four of the top 10 markets had more leased lines over the same period than last year: Phoenix, North Dallas, Fort Worth, and Urban Atlanta, in descending order. The other six markets, which had the highest number of new homes in the first five months of the year, saw fewer new units compared to the same period in 2019. These markets occupy the first five places in the ranking:
The Denver multi-family market, under pressure from its long-standing demographic and economic expansion, remained active even during the coronavirus shutdown as construction was classified as an essential service by local officials. In June, the metro counted more than 21,000 units in 104 properties under construction, of which around 11,000 should be completed in 2020.
Between January and May, developers broke ground in 16 projects with 3,654 units, significantly fewer than in the same period last year. Specifically, the multi-family development comprised a total of 5,692 units in 30 properties between January and May 2019. This decline in inventory expansion is due not only to the health crisis, but also to the energy sector, which saw one of the worst slumps of all time at the beginning of the year due to the global oil conflict.
ALSO READ: Building in times of COVID-19
In the submarket CBD / Five Points / North Capitol Hill, development activity intensified most strongly in 2020 with a total of 1,037 units in four new projects. The area also had the largest development underway, the 403-unit DriveTrain. The Carmel Partners community is located at 3299 Brighton Blvd. and is developed using a $ 97 million home loan from Massachusetts Mutual Life Insurance Co. due April 2030.
4. Fort Worth
Construction in Fort Worth remained high – in June the pipeline counted more than 11,600 units in 44 properties under construction. Almost half of them have a delivery date at the end of the year.
Between January and May 2020, property developers laid the foundation stone with 3,670 units in 14 properties, 1,000 units more than construction began in the same period in 2019. Keller / Westlake was particularly attractive with 902 units in three new municipalities under construction. The Integrated Real Estate Group has been one of the most active developers in the market, starting in 2020 with development of 504 units so far.
One of Fort Worth’s notable 2020 projects is The Mark at Weatherford, a 355-unit community at 238 College Park Drive. The CPG Development owned 12-building facility will deliver the first units in the summer of 2021 and winter of 2021 be completed.
3. North Dallas
Central Texas was at the top of the development rankings for most of the cycle, and northern Dallas was its strongest sub-region. In June, almost 27,000 units in 87 properties were under construction, of which more than 14,000 units in 50 properties are to be completed by the end of the year.
In the first five months of 2020, around 4,900 units were built in 14 properties in North Dallas, almost 1,500 units more than in the same period last year. Although this year’s number is higher, and although construction was deemed essential in Texas during the health crisis, the number of new construction has slowed amid COVID-19 as 11 of these new projects broke ground in January and February.
ALSO READ: Top 5 North Dallas submarkets for development by number of units
The developers continued to focus intensively on the North Frisco / West McKinney submarket and began working on 882 new units. These new projects complement the vast 835-unit community of Parkside at Craig Ranch, which broke ground in two new phases in February.
Aura at the Realm, a 421-unit property under construction on 3964 State Highway 121, was one of the largest projects in the region, breaking ground in 2020. The Trinsic Residential Group asset has a $ 55 million home loan associated with it, granted by UMB. was awarded bank. The mixed-use property comprises 35,000 square meters of retail space and is expected to be completed by the end of 2021.
Phoenix, another subway that has had an exceptional performance in recent years, posted a record home delivery in 2019. As one of the preferred cities for Californians looking to move, Phoenix’s population rose 1.9 percent, well above the national average of 0.3 percent. The demand for housing thus remained robust until 2020. In June, more than 20,000 units were under construction in 87 properties.
Since the construction was considered essential from the start, the groundbreaking for new developments continued almost unimpressed – between January and May around 5,000 units were built in 22 plants, almost 800 units more than in the same period of the previous year. With 2,125 units in eight properties under construction, Sky Harbor had the most units to begin construction this year. In total, more than 8,000 units in 36 objects are to be delivered by the end of the year.
One of the largest multi-family complexes that broke ground in the subway this year is the San Artes with 552 units. Located at 17900 N. Hayden Road in Scottsdale, this Mark Taylor property is being built using a $ 110 million home loan from Wells Fargo & Co. and is expected to be completed in 2022.
1. Austin, Texas
As of June, Austin had more than 26,000 units in 106 ongoing projects. Of these, more than 5,000 units were built in 21 properties between January and May 2020. Even if the number of units has decreased by almost 1,800 compared to the same period in the previous year, the capital is one of the fastest growing population in the country; the resulting increased demand for apartments helped the state capital to be placed on our list.
A brief period of unclear guidelines overshadowed Austin’s construction industry following the COVID-19 outbreak. This was reflected in the progressively decreasing number of ground-breaking ceremonies – from five projects per month in January and February, the number of new projects dropped to four in March and April and to three in May. However, construction was eventually viewed as an essential service and both commercial and residential projects resumed their operations.
ALSO READ: Top 5 Multi-Family Deliveries in Austin
As of this year’s groundbreaking, East Central Austin had the most homes under construction – 544 units in three parishes – followed by the University of Texas submarket with 473 units in two properties. In total, more than 17,000 units are expected to be completed by the end of the year, but given the impact COVID-19 is having on the industry, delays will likely push delivery dates well into 2021.
One notable project was Double Creek in the Sunset Valley submarket in South Austin at 600 West Farm to Market 1626, off Old San Antonio Road. The 12-building, 372-unit property is owned by Stillwater Capital, based in Dallas, in partnership with Sweid & Sweid of Dubai, and is being built with the help of a $ 35 million home loan from Prosperity Bank due in October 2022. The completion of the first apartments is planned for spring 2021, the entire project should be completed by summer 2021.
Yardi Matrix covers all apartment buildings with over 50 units in 133 markets in the United States. This ranking reflects ongoing projects within this sample group.