BiggerPockets Daily Florida and Texas Lead Nation in New Apartments
Nov 29, 2025
New apartment construction in the U.S. is set to hit a surge in 2025, with over 500,000 new units expected. Texas cities like Dallas and Austin are leading in completions, while Houston faces a slowdown. Despite this, New York City is still the top metro for new units. Florida also plays a significant role, especially with Miami’s impressive pipeline. The discussion covers how rising tariffs impact construction costs, the dynamics between apartment supply and single-family rentals, and the pressures facing luxury apartments in a crowded market.
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Two States Drive National Supply Surge
- Florida and Texas together account for roughly 30% of new apartment supply coming online in 2025.
- This surge of 500,000+ new units is already putting downward pressure on rents and raising vacancies.
Monitor Tariffs And Construction Costs
- Watch tariff outcomes because sustained tariffs could sharply slow future projects and reduce long‑term supply growth.
- Consider how higher construction costs from tariffs would push rents back up once supply growth slows.
Texas Growth Is Metro‑Specific
- Texas metros like Dallas–Fort Worth and Austin are among the top national adders of new units in 2025.
- Houston is bucking the trend with a 40% decline in completions, which may help stabilize local rents.