According to a new report by apartment search website RentCafe, New York City is projected to deliver the most newly-built apartments in 2022, claiming the top position for the first time since 2018. 

Despite pandemic-induced setbacks in the last two years, New York City is expected to provide a record 28,153 brand new rental apartments by the end of the year. This figure is out of the 420,000 new rental units projected to be completed this year nationwide. It is also nearly 50% higher than the number of apartments that were completed throughout the city in 2021. 

Across the United States, the projected new rental units to be built this year represented a historic 50-year peak. According to RentCafe, this construction boom is driven by greater demand for apartments as renters hold off on purchasing homes due to soaring inflation and rising interest rates. 

“The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues,” said Doug Ressler, manager of business intelligence at apartment data provider and RentCafe sister company, Yardi Matrix.

Aside from New York, ten of the top 20 metro areas for apartment construction are on track to hit their five-year highs this year. Another factor behind this surge is the rise in employment and savings by those who lived with family or friends during the pandemic. 

The rise of apartments in New York City comes on the heels of recent rent hikes that continue to make the city the most expensive rental market in the country.