BiggerPockets Daily Florida and Texas Will Make Up Nearly a Third of All New Apartments This Year
Oct 2, 2025
A staggering half a million new rental apartments are expected to flood the U.S. market in 2025, with Florida and Texas leading the charge. As these new units reshape vacancy rates and rental dynamics, we explore how policy changes and rising construction costs could derail future projects. Texas metros like Dallas and Austin are ramping up their supply, while New York City continues to push new completions. The conversation also highlights how smaller landlords might benefit from affordability issues that new luxury apartments fail to address.
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Sunbelt Drives A Third Of New Supply
- Florida and Texas will account for nearly 30% of all new apartment supply in 2025, driving a national supply surge.
- Over 500,000 new rental apartments will be delivered in 2025, pressuring rents and raising vacancies temporarily.
Tariffs Could Curtail The Building Boom
- Tariffs and rising construction costs could abruptly slow future multifamily development if they persist.
- Higher material prices would shorten the current supply wave and likely push rents back up long-term.
Texas Growth Is Uneven By Metro
- Texas metros like Dallas-Fort Worth and Austin are among the top national adders of apartment units in 2025.
- Houston is different: completions are falling near 40%, which may help stabilize rents there.