Examining New Construction in Your Metro | Q3 2024

As the rental market slows down after its busiest season, multifamily real estate professionals are looking at trends that will affect apartment rentals in the near future. This information will help teams make better decisions as they prepare for the slower months and plan for the cycle of leasing activity.

For Q3, Apartment List will provide in-depth analyses of rental market data for our key metro areas: Milwaukee, St. Louis, Chicago, Tampa, Orlando, Detroit, Cleveland, Columbus, Cincinnati, and Kansas City.

Taking a Look at Lease-Up Activity by Metro

To gain a deeper understanding of current market conditions, let's examine lease-up activity in our ten key metro areas. The data below outlines the number of new apartment units currently available for lease in each market. This data offers valuable insights into the pace of absorption and overall demand for rental housing in these regions.

• Milwaukee: 11,000
• St. Louis: 12,000
• Chicago: 28,000
• Tampa: 30,000
• Orlando: 41,000
• Detroit: 8,000
• Cleveland: 6,000
• Columbus: 21,000
• Cincinnati: 11,000
• Kansas City: 15,000

Construction Activity’s Impact on Vacancy Rate

Increased construction activity across various markets has had a direct impact on vacancy rates. As more new units come online, they can lead to a temporary rise in vacancies as the market adjusts to the increased supply.

Construction has increased vacancy rates in all of our featured metros, which has generally led to slower rent growth. Here’s where vacancy rates currently stand:

• Milwaukee: 5.7%
• St. Louis: 6.5%
• Chicago: 5.5%
• Tampa: 7.1%
• Orlando: 6.8%
• Detroit: 4.9%
• Cleveland: 5.8%
• Columbus: 5.7%
• Cincinnati: 5.2%
• Kansas City: 6.4%

Unit Completions

While new apartment construction starts have been slowing down in all of our ten focus markets, the number of units expected to be completed through the first half of 2025 is relatively high. This is largely due to projects that were started in prior years and are now nearing completion.

As a result, we can expect a continued influx of new units onto the market, which could potentially lead to increased competition among landlords and potentially lower rents in some areas. However, the overall impact on the rental market will also depend on factors such as economic conditions, job growth, and demographic trends.

Navigating the Evolving Rental Market with Apartment List

As the rental market evolves, Apartment List is here to help you stay informed about emerging trends that are crucial for real estate professionals. By understanding lease-up activity, construction trends, and the impact of unit completions, you can better implement strategies to outperform your competitors as market conditions change.

As market conditions soften it’s imperative to turn more inquiries into viewings. Apartment List’s GenAI Sales Agent, Lea Pro, enables 68% more lead-to-tour conversions. Ready to unlock the benefits of our Smart Leasing Platform? Get in touch today!