Apartment Construction Has Literally Disappeared in 16 Major Markets

In 16 major U.S. apartment markets, there isn't a single unit under construction — and in some of them, that's starting to look less like a problem and more like an opportunity.

Jordan B. & Nina Dale
April 03, 2026

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Good morning. Sixteen major U.S. apartment markets have no units under construction — and in the ones where occupancy is pushing 99%, that empty pipeline is starting to look a lot less like a warning sign and a lot more like a setup.

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CRE Trivia 🧠

What is the most expensive office building ever sold in the United States, and what did it trade for?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,582.69

Pct Chg:
+0.11%

FTSE NAREIT

FNER

787.75

Pct Chg:
+1.28%

10Y Treasury

TNX

4.309%

Pct Chg:
-0.023

SOFR

30-DAY AVERAGE

3.65%

Pct Chg:
-0.00

*Data as of 4/2/2026 market close.

Nobody Is Building

The Apartment Pipeline Has Gone Completely Dark in These 16 Markets

In 16 major U.S. apartment markets, there isn't a single unit under construction — and in some of them, that's starting to look less like a problem and more like an opportunity.

The list goes on: According to RealPage Market Analytics, 16 of the nation's 150 largest apartment markets had zero units under construction as of year-end — up from 10 a year ago and just six the year before that. The markets span the country: Atlantic City, Fresno, Lubbock, Honolulu, Flint, McAllen, and Youngstown, among others.

Screaming for product: Five of the 16 rank in the top 10 nationally for occupancy. Youngstown leads the entire country at 98.9%. Atlantic City and Flint aren't far behind at 97.6% and 97.4% respectively. Urban Honolulu posted the second-highest effective rent growth in the country at 7.7% over the past year — with nothing in the pipeline to meet it.

But it's not a clean story: Not every zero-pipeline market is a landlord's paradise. McAllen and Midland/Odessa both sit near the bottom nationally for occupancy at 92.8%, and three markets in the cohort actually cut rents over the past year. In those cases, the absence of construction reflects weak demand — not scarcity.

What the drought signals: The bifurcation is the point. Markets like Youngstown and Honolulu represent a classic setup — multi-year supply gaps meeting tight occupancy — that could produce outsized rent growth once demand firms up or capital regains confidence. Markets like Midland/Odessa tell a different story: volatility keeping developers away for good reason.

➥ THE TAKEAWAY

Why it matters: Zero construction doesn't automatically mean opportunity — but in the right markets, it's a signal worth paying attention to. As the broader apartment sector works through its oversupply, a quiet group of cities with no pipeline, near-full occupancy, and rising rents is building the conditions for the next landlord market.

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✍️ Editor’s Picks

Fee transparency: The FTC is moving to ban hidden rental junk fees—like surprise charges for amenities and services—aiming to reshape leasing practices and give renters clearer all-in pricing.
What happens after a 1031 sale? Selling triggers capital gains taxes unless you complete another exchange. Learn your options—from reinvesting to cashing out—in our latest guide. (sponsored)
Stagflation watch: Economists are increasingly flagging a stagflation scenario, where stubborn inflation collides with slowing growth, complicating the Fed’s path forward.
Pyramid haircut: San Francisco’s Transamerica Pyramid traded for $692M at a steep loss from its prior sale, spotlighting how far office values have fallen—even for trophy assets.
Modeling overhaul: CRE firms are overhauling traditional financial models, turning to advanced scenario analysis tools to better underwrite deals in an unpredictable market.

🏘️ MULTIFAMILY

Construction thaw: A new NMHC survey shows modest improvement in apartment construction conditions, with developers seeing slightly better access to financing and materials.
Times Square conversion: Yellowstone secured $203M to convert a Times Square office building into residential use, advancing another high-profile adaptive reuse play.
East Bay surge: apartment rents in the East Bay hit a four-year growth high as a thinning supply pipeline tightens market conditions.
Brooklyn backing: JPMorgan provided financing for a major Brooklyn multifamily asset at 625 Fulton, signaling continued confidence in well-located urban apartments.
Pref equity stack: 3650 Capital deployed $104M in preferred equity for a $455M Chicago acquisition, highlighting creative capital stacks filling today’s financing gap.

🏭 Industrial

Data Center moratorium: Maine lawmakers are pushing to ban new data centers, citing energy strain and environmental concerns as opposition to the asset class grows.
Leased refi: Monday Properties and KPR secured refinancing for a fully leased Westchester industrial asset, signaling continued lender confidence in stabilized, income-producing logistics properties.
Portfolio flip: A Singapore-based investor sold a Dallas-area industrial portfolio to a local buyer, underscoring sustained demand for industrial assets and ongoing capital rotation in Texas markets.

🏬 RETAIL

Policy pushback: New York landlords are gearing up to challenge proposed commercial rent stabilization measures, warning the policy could disrupt leasing dynamics and deter investment.
Cannabis corner: A dispensary lease in Queens highlights continued retail demand from cannabis operators seeking footholds in high-traffic neighborhood corridors.
Net lease nudge: Single-tenant net lease retail remains resilient in 2026, with investors favoring stable, long-term income streams despite broader market uncertainty.
Desert deal: A Phoenix-area retail center traded for $10.8M, signaling steady investor appetite for well-located neighborhood retail assets.
Luxury lease-up: Gucci’s new Palm Beach storefront underscores the strength of ultra-luxury retail corridors as top brands double down on flagship locations

🏢 OFFICE

Federal underuse: Nearly 10,000 federal office spaces are operating below 60% utilization, highlighting widespread inefficiencies as agencies reassess their real estate needs.
LA refi: A Los Angeles office campus secured an $80M refinancing, signaling the lender's willingness to back well-positioned assets despite ongoing office market headwinds.
Leasing boom: AI companies are driving a resurgence in San Francisco office leasing, emerging as a rare source of expansion demand in a challenged market.
Houston suburban build: A new office development near Houston points to continued momentum for suburban, amenity-rich campuses attracting modern tenants.

🏨 HOSPITALITY

Napa resort buy: Blackstone acquired a luxury wine country resort north of San Francisco, expanding its hospitality portfolio with a high-end leisure asset.
London hotel sale: A Radisson Blu hotel in London traded to a private buyer, reflecting continued investor interest in core European hospitality assets.
Gaming growth: Regional demand beyond Las Vegas is driving strong revenue gains at gaming hotels, highlighting diversification across U.S. casino markets.

📈 CHART OF THE DAY

CRE Trivia (Answer)🧠

30 Hudson Yards in New York City — the skyscraper anchored by KKR and CNN — is among the most valuable, but the record for a single-asset U.S. office sale belongs to 1221 Avenue of the Americas, which traded for approximately $1.8 billion. However, the broader record for a U.S. commercial real estate transaction belongs to the Stuyvesant Town-Peter Cooper Village apartment complex in Manhattan, which sold for $5.45 billion in 2015 — the largest single real estate transaction in U.S. history at the time.