BiggerPockets Daily Southern States Lead the Charge in Apartment Growth
Dec 23, 2025
A surge in apartment construction is on the horizon, with over 500,000 new units expected in 2025. Texas cities are leading this boom, but rising tariffs and construction costs could pose challenges. New York City is ramping up efforts to address affordability with a substantial pipeline of new units. Meanwhile, Florida, particularly Miami, is rapidly increasing its rental offerings. The podcast also explores the impact of luxury branding on apartment pricing and discusses the shifting demand between apartments and single-family rentals.
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Massive Apartment Supply Wave
- Over 500,000 new rental apartments will be delivered in 2025, continuing a multi-year supply surge.
- That influx is already putting downward pressure on rents and raising vacancy rates temporarily.
Florida And Texas Dominate New Supply
- Florida and Texas together account for roughly 30% of new apartment supply coming online in 2025.
- That concentration means regional effects in those states will disproportionately influence national rental trends.
Tariffs Could Reverse The Supply Wave
- Tariffs on building materials and rising construction costs are key wildcards for future supply.
- If tariffs stick, new projects could slow and long-term rents may rebound as supply tightens.