A total of 1.2 million rental units came online across major U.S. cities since 2018. A new report from RentCafe, leveraging Yardi Matrix data, looked at the 50 largest metros, ranking zip codes based on how many units were added over the past five years.
Large amounts of new units being added to a market usually indicates an influx of demand, and a few neighborhoods stood out above the rest. The RentCafe report analyzed both the total number of new units added, as well as how much each zip code expanded as a percentage of total stock.
Neighborhoods in Mid-Atlantic, Southeast, Southwest and Midwest metros topped the rankings, along with a few outliers in California, emboldened by migration patterns and economic growth. Revitalization efforts in major metros led to a construction boom in and around central areas. Most top ranked zip codes were within these submarkets.
Trending neighborhoods double or triple their stock
One Miami area nearly quadrupled the number of new apartments in a five-year period through 2022. The trending Midtown zip code of 33132 added 4,184 new apartments, representing a whopping 354 percent increase of its stock. The zip code’s waterfront access and major employers makes it an attractive location for young renters—the median age of this neighborhood is 34.6, compared to the metro-wide 41.4.
Three Florida zip codes made the top five in terms of how much their stock expanded—including the Orlando suburb of Maitland with a 273.6 percent increase and Panama City with 189.9 percent. The other two areas that more than doubled were in metro Richmond, Va. (up 235.1 percent) and Fuquay Varina, N.C. (up 216.3 percent), metro Raleigh.
Miami has been consistently at the top of national rankings for multifamily development and demand lately. The metro-wide occupancy rate remained at roughly 96.0 percent as of August, according to a recent Yardi Matrix report. It also remained one of the most competitive rental markets throughout the year.
Two Washington, D.C., zip codes lead development
In terms of total number of apartments added, Washington, D.C., zip codes 20002 and 20003 topped the rankings with more than 14,500 new units combined in five years.
The H Street Corridor zip 20002 added 7,378 units between 2018 and 2022, representing a 73.1 percent increase of its stock. The proximity to quality retail, along with vibrant political and social scenes makes it one of the most in-demand neighborhoods in the U.S. Land availability and plenty of investment led to a surge in new apartments. The zip code’s median income stood at $79,470, with a median age of 33.5.
Riverfront zip code 20003 more than doubled its rental stock, with 7,225 units added, or an expansion of 122.2 percent. This is another area with plentiful access to shops, restaurants and entertainment, along with museums and public transit options. High-end rental options have popped up across the neighborhood. Here, the median income was $115,750, while the median age was 34.5.
The top five also included these zip codes:
- 11101 in Queens, N.Y. with 7,081 new units, or 73.5 percent
- 37203 in Nashville, Tenn., which grew by 96.6 percent with a total of 6,806 units
- 75034 in Frisco, Texas, which added 5,872 apartments, or a 69.5 percent expansion
A total of 16 Texas zip codes made the ranking
Looking at the state level, Texas had 16 zip codes that were in the top 50 ranking, by far the most entrants out of any other state. These Dallas, Austin and Houston zip codes added a total of 59,624 apartments.
In Houston, the 77007 zip code had the most apartments added out of the entire metro—5,014 units. The central area includes access to Memorial Park, several museums and Interstate 10, as well as plentiful restaurants and retail along Washington Avenue.
The 78702 Austin zip code more than doubled its available apartments, with a 106.5 percent increase of stock—3,493 new units added. This East Austin neighborhood includes a plethora of retail along East Seventh Street, direct access to downtown, along with several schools, museums and entertainment options.
Dallas’ 75034 zip code also stood high in the rankings. Roughly 96.0 percent of the 5,872 new apartments built in this area are in high-end properties. Many major employers are present, making this zip code attractive to upscale renters.
Dallas had eight zip codes in the ranking, the most of any metro. The Metroplex had more than 57,000 units under construction as of May, according to a Yardi Matrix report. Other high-ranking zip codes in the metro included 75052 in Grand Prairie, which added 4,084 units; 75070 in McKinney, where 4,021 apartments were delivered; and 75082 in Richardson, which grew by 79.5 percent.
