BiggerPockets Daily Florida and Texas Will Make Up 30% of All New Apartments This Year
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Sep 9, 2025 New rental apartments are flooding the U.S. market, with Florida and Texas leading the way. This surge is transforming rent dynamics and vacancy rates, but supply chain issues could halt future growth. Smaller landlords might find an advantage amid the affordability gap created by shiny new complexes. The charm of single-family homes remains strong, especially among larger families, as the luxury branding of apartments faces scrutiny. Changes in tax incentives and zoning laws are also reshaping suburban rental trends.
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Half Million New Apartments In 2025
- Over 500,000 new rental apartments will be delivered in 2025, continuing 2024's record supply wave.
- This surge is already pressuring rents downward and raising vacancy until absorption catches up.
Florida And Texas Dominate New Supply
- Florida and Texas will account for about 30% of all new apartment construction coming online in 2025.
- Those two states are driving a disproportionate share of the national supply increase.
Tariffs Could Interrupt The Building Boom
- Tariffs and rising construction costs are two key forces that could slow future apartment development.
- If tariffs stick, the supply wave may prove short-lived and long-term rents could climb again.