Dallas is quickly catching up to New York in Rent Cafe’s 2024 Apartment Construction Report. With nearly 33,000 new apartments expected to be completed by the end of the year, the metro area is a strong contender for the top position.
According to the study, Dallas is projected to complete 32,932 new apartments by the end of December 2024, just three units shy of New York's total. Within the metro area, Dallas proper leads with 5,267 units slated to open this year. Fort Worth follows closely with 4,608 apartments, while Frisco and McKinney round out the top builders with 2,020 and 1,675 units, respectively.
Dallas continues to attract companies and construction projects, thanks to its steady population growth, business-friendly environment, affordability compared to similar-sized metros and strong infrastructure. Corporate relocations are driving job creation and wage growth across the region, further stimulating economic growth and drawing in new residents who need housing.
To meet the increasing demand for apartments, Dallas could capitalize on its untapped vacant land and expedite the permitting process, potentially adding up to 100,000 new units.
Other leading Texas markets for apartment construction in 2024 include Austin (21,506 units), Houston (18,301 units) and San Antonio (9,617 units).
Despite a slowdown in construction, Dallas is poised to maintain its robust presence over the next five years, with more than 108,000 new units scheduled for completion by 2028. However, that’s 20,000 fewer units compared to the total of the last five years.
Even with recent construction efforts reminiscent of the early 1970s building boom — when a surge of rentals hit the market as Baby Boomers came of age — demand for rental apartments in the U.S. still outpaces supply, driven by significant growth in the renter population over the past 50 years.
The majority of apartments built over the last five years, along with those currently under construction, are high-end, targeting primarily upper-middle- and high-income renters. This emphasis on luxury units, coupled with the concentration of new developments in the largest U.S. metros, suggests that renters in smaller markets may continue to face limited affordable housing options.
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