[Baltimore Sun] Record-breaking number of new apartments being built, but they remain unaffordable for many
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A record-breaking number of new apartment buildings are sprouting up around the country this year — more than half a million to be exact — but experts say despite the boom, construction is slowing.
The national shortage of homes to buy or rent is keeping prices high and making it tough for renters and hopeful buyers.
According to the National Multifamily Housing Council, the U.S. needs to build 4.3 million more apartments by 2035 to meet the demand for rental housing.
Many of the construction boom’s new apartments were financed when interest rates were low, so developers could build them much quicker.
An analysis from RentCafe found that since these apartment buildings popped up so quickly, it cooled off the rental market a bit. However, even though the number of available apartments grew, the majority are concentrated in prime areas, making them less affordable to many people.
According to RentCafe, the average rent for an apartment across the U.S. is around $1,700 a month, 19% higher than pre-coronavirus pandemic levels. Asking rents increased 3.4% in August compared with the same time last year, according to Zillow’s rental report.
The New York metro area leads in completed new apartments for the third year in a row with nearly 33,000 new rentals, followed by Dallas and Austin, Texas.
New York City is the most expensive place to rent an apartment in the U.S. According to Moody’s Analytics, you’d need to make at least $160,000 to live comfortably there.
Content from The National Desk is provided by Sinclair, the parent company of FOX45 News.
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