Apartment construction has been skyrocketing in Dallas-Fort Worth, and the metro is on the brink of surpassing New York City, boasting the second-highest rate of new apartment construction in the nation, according to a new insight report from RentCafe.

The report from August 7 analyzed new apartment construction data across 369 U.S. metropolitan statistical areas (MSAs). For the purpose of the study, only apartment buildings containing 50 or more units were included. Any U.S. metros with fewer than 300 units or fewer than two properties/buildings were excluded.

RentCafe's data estimated Dallas-area developers are expected to build a staggering 32,932 total apartment units in 2024, which is just three fewer units than No. 1-ranking New York City's anticipated goal. In just Dallas proper, 5,267 units are estimated to be complete by the end of the year.

Dallas also topped the charts for the highest apartment construction rate between 2020 and 2022, with 76,660 new apartment units opening around Dallas-Fort Worth since the beginning of the so-called "pandemic building boom."

The report attributes booming construction rates to DFW's steady population growth, the area's thriving job market, its relative affordability (in comparison to similar-sized U.S. metros), and its desirability among major employers.

"Naturally, corporate relocations create jobs and boost wages throughout the metroplex, further fueling economic growth and attracting newcomers who need housing," the report's author wrote. "And, to address the growing need of apartments, the city of Dallas could leverage its untapped vacant land and streamline the permitting process, potentially adding up to 100,000 new apartments."

Fort Worth is expected to build the second highest number of new apartments in North Texas, totaling 4,608 units. Other large suburbs like Frisco and McKinney will complete an anticipated 2,020 and 1,675 apartments by the end of 2024, respectively.

Here's how many new apartments are expected to be built by the end of 2024 in other Metroplex-area cities:

• Grand Prairie – 1,468 units
• Melissa – 1,334 units
• Plano – 1,247 units
• Garland – 1,190 units
• Arlington – 1,190 units
• Prosper – 1,158 units
• Lewisville – 982 units
• Denton – 910 units
• Richardson – 734 units
• Sachse – 686 units
• North Richland Hills – 643 units
• Irving – 530 units
• Carrollton – 508 units
• Burleson – 454 units

Dallas-Fort Worth apartment construction by 2028
Based on the number of newly built apartments from 2019 to 2023, RentCafe's analysts extrapolated New York and DFW will continue dominating new apartment construction through 2028. But unlike past years where there was a steady growth in completed units, the report predicts construction will dwindle until 2027, and then experience a big hike in 2028.

"This slowdown is mainly because apartment construction starts have significantly dropped so far in 2024 compared to the same time in 2023," the report said. "Moreover, apartment construction starts are expected to keep falling throughout the next year as developers struggle to get financing due to stricter loan standards amid economic uncertainties, which causes delays in projects."

For context, Dallas-Fort Worth had the highest number of new apartments completed – 128,418 units – from 2019 to 2023, versus New York's 116,207 newly built units.

RentCafe calculated New York will lead the nation with 150,327 new apartments built by the end of 2028, and DFW will trail behind with 108,178 completed units. The Metroplex's anticipated figures are 28 percent lower than New York's expected apartments.

"This indicates that the metroplex is experiencing the aftereffects of its recent development surge (even though its population grew by 152,600 residents in 2023 alone), sustaining the demand for apartments," the report said.

The full report and its methodology can be found on rentcafe.com.