- 16 major US markets report zero apartment construction projects underway.
- Some ‘no-build’ cities still post nation-leading occupancy and rent growth rates.
- Others face weak demand, negative rent changes, and lagging occupancy.
- Developers and investors are adapting strategies based on local market risk.
Apartment Construction Activity Stalls
Globe St reports that apartment construction has disappeared in 16 of the nation’s top 150 markets, according to RealPage Market Analytics. These markets, including Atlantic City-Hammonton, Urban Honolulu, and Flint, show no active multifamily projects as of year-end 2025. This marks a sharp increase from 10 no-construction markets last year and highlights a growing cautiousness among developers.
Wide Range of Fundamentals
The ‘no-build’ apartment construction trend spans diverse regions and demand profiles. In Youngstown-Warren-Hermitage, occupancy sits at a national high of 98.9%, with no apartments built since 2018. Meanwhile, markets like Midland/Odessa and McAllen/Brownsville face occupancy rates below 93% and offer little incentive for new development. Key apartment construction trends show the absence of building does not always mean tight market conditions or growth potential.
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Mixed Signals From Rent Growth
Some zero-development markets, such as Urban Honolulu and Champaign-Urbana, have seen effective asking rents rise by 7.7% and 5.7%, respectively—among the highest in the US. Yet, others, including Atlantic City, Eugene-Springfield, and Midland/Odessa, cut rents over the past year, reflecting weak demand despite stable supply. This divergence aligns with broader signs that rent momentum is cooling in several regions as economic uncertainty weighs on multifamily performance, even in markets with limited new supply. Investors are watching whether these diverging apartment construction trends signal opportunity or ongoing risk in their local markets.
What’s Next for Investors
For capital sources, the expansion of apartment construction ‘droughts’ means increased focus on market-level fundamentals and timing. Markets with tight vacancies and proven rent growth may eventually warrant new development once confidence rebuilds. In more volatile regions, the lack of apartment construction may persist as capital stays cautious and leasing challenges remain in focus.
