Chart of The Week – November 13th 2023

Last week we examined the markets with the most units currently under construction. Large metros like New York, Dallas and Miami topped the list with existing construction well above 50,000 units. While there is no denying the size of those pipelines, the top markets also have significant existing inventory and population. This week we look at the markets with the highest percentage of construction relative to the existing multifamily inventory. Nashville tops the list with more than a quarter of its existing inventory currently under construction. Austin and Miami round out the top 3 markets, with construction equaling 20% of existing stock. As the supply boom continues and demand softens, I expect to see significant underperformance in rent and occupancy from these markets.