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Starts for new multifamily rental and condominium construction have continued at historically high levels in 

2022, though the levels of the first half of the year are down modestly from the record levels achieved in mid2021, according to the Dodge Data & Analytics Supply Track construction pipeline. As shown in the chart below, 

although the total number of new apartment rental units started in the first half of 2022 increased 6.5% from the 

same period of 2021 to approximately 277,000 units, the number of units started each quarter has been in 

decline since the second quarter of 2021, when it peaked at 149,000 units. It has since declined each quarter, 

with an estimated 139,000 units started in the second quarter of 2022. Revised data for the full year of 2021 show 

apartments units started increased significantly in 2021, rising 27% from 2020 starts to 541,000.

Apartment rental units continue to be the predominant format of multifamily construction in 2022, which has 

been the case since 2008. Just 28,100 condo units were started during the first half of 2022, which is down 

significantly from 32,400 units in the first half of 2021, according to Dodge Data & Analytics.

Census Bureau Starts Continue to Rise

The Census Bureau’s estimated multifamily starts has averaged 555,000 units for the first half of 2022, which 

includes condominiums and two- to four-unit properties. This is a remarkable increase compared to the 461,000 

units started during the first half of 2021, which itself was a sizable rebound from the onset of the pandemic. We 

forecast that multifamily starts will increase by slightly less than 6% in 2022 from the prior year, rising to 502,000 

units. While the level of supply continues to be visibly robust, overall starts remain well below the extraordinary 

levels achieved in the 1970s when Baby Boomers were reaching peak apartment rental age – more than 1 million 

units were started in 1973.

Multifamily Economic and Market Commentary

AUGUST 2022

Mid-2022 Multifamily Construction Update 

Source: Dodge Data & Analytics

Note: Q2 2022 project starts are preliminary and subject to significant revision

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National Condo and Apartment Units Started

Apartments Condos
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Multifamily Economic and Market Commentary

Construction Pipeline Further Expands

According to the Dodge Data & Analytics Supply Track construction pipeline data, the number of apartment 

units underway across the country continues to grow. As illustrated in the chart below, over 1,140,000 units 

are estimated to have been under construction as of July 2022. That’s compared to 844,000 units in January 

2022 and 778,000 units in July 2021. Condo units have also been increasing, rising to 120,000 units as of July 

2022 compared to 86,000 units in January 20222, and 78,000 as of July 2021. 

Class A and Major Metros Remain Focus of Developers

Multifamily rental development continues to be concentrated in the largest metros in the country, as seen in 

the table on the next page. New York remains the most active metro in the country, with more than 130,000 

units either recently completed or underway. Washington, DC, is in second place with over 66,000 units. Dallas 

and Austin have over 62,000 and 57,000 units, respectively, underway or recently completed. Los Angeles, 

Seattle, Houston and Atlanta are close behind with each having more than 43,000 units underway, while 

Phoenix and Orlando round out the top 10.

While much of the current development underway is concentrated in the largest metros, in most metros it is 

further concentrated in only a few submarkets, particularly in more dense and urban-focused submarkets. 

Additionally, most units being developed are more expensive, Class A-type apartment units. While these type 

of submarkets and units were the first to experience rising vacancies at the onset of the pandemic in 2020, 

they also saw a sustained recovery in 2021 and 2022. For example, CoStar is expecting Class A unit rents to see 

the highest level of rent growth among the apartment classes in 2022, forecasted at 6.9% for Class A, though 

that would be down from the unsustainable 14.7% growth seen in 2021.

*Units currently underway with an expected completion date after 2022Q2

Source: Dodge Data & Analytics

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Avg. Units per project

Average Number of Units per Apartment Project Started

Average Project Size Number of Projects Started

Metro 2021 2022 2023 Beyond Total

New York 31,835 46,378 47,830 4,109 130,152

Washington, DC 15,348 24,699 17,944 8,464 66,455

Dallas 15,417 18,388 20,440 7,903 62,148

Austin 12,914 20,775 20,242 3,300 57,231

Los Angeles 14,668 16,067 14,473 1,991 47,199

Seattle 9,943 19,757 14,125 2,540 46,365

Houston 16,115 16,125 10,347 2,097 44,684

Atlanta 8,465 16,599 17,399 656 43,119

Phoenix 9,886 19,396 9,766 2,626 41,674

Orlando 8,082 13,249 17,115 284 38,730

Denver 10,862 11,636 14,322 1,704 38,524

Minneapolis 11,183 13,577 10,574 450 35,784

Philadelphia 6,005 11,853 16,781 528 35,167

Miami 7,919 10,168 13,107 3,574 34,768

Nashville 7,898 13,509 11,819 306 33,532

Boston 7,565 14,806 7,833 1,577 31,781

Charlotte 7,159 9,536 7,826 647 25,168

San Antonio 5,951 7,881 7,145 2,025 23,002

Fort Worth 6,465 7,863 7,177 1,314 22,819

Tampa 5,715 9,764 5,199 1,190 21,868

Chicago 6,462 6,913 7,070 362 20,807

Newark 4,268 7,978 5,518 1,081 18,845

Salt Lake City 2,397 5,966 9,191 490 18,044

Portland 6,375 6,665 4,302 622 17,964

San Diego 4,330 6,400 6,528 478 17,736

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Multifamily Economic and Market Commentary

Also noteworthy is the continued absorption of 

recently constructed Class A units without significant 

market disruption. Class A concession levels remain 

higher than those for Class B and C units, but 

according to RealPage, just 6.9% of all Class A units 

across the country are offering concessions as of 

June 2022, which is a notable decline from 12.5% in 

June 2021.

Source: Dodge Data & Analytics

Projects Started Declines in 2022

According to the Dodge Data & Analytics Supply Track 

pipeline, the number of projects started in the first 

half of 2022 decreased slightly, declining to 2,485 

projects for the first six months of 2022, down from 

2,592 in the first half of 2021, as seen in the chart 

below. The average number of units per project 

increased year over year to approximately 111 units 

per project for the first half of 2022, which is above the 

average of 100 units for the same period of 2021.

Despite worldwide disruptions to supply chains that have impacted development activity, the multifamily industry 

continues to see elevated levels of new construction. Fortunately, the industry also continues to experience solid 

absorption, due to the ongoing rebound from pent-up demand coupled with the long-term national housing 

shortage. While rent and vacancy fundamental measures were already likely to ease from their recent exceptional 

growth, continued deliveries of new units may push some metro areas to see supply-driven increases in their 

vacancy rates over the next 12 months. Additionally, the more expensive Class A segment may see a more enhanced 

softening of its vacancy rates, as the overall market eases and the multi-year ongoing surge of development is 

almost entirely comprised of these types of units. Despite this softening, we expect the overall multifamily sector to 

remain stable as the nation needs much more housing to satisfy the needs of the growing population.

2022 Multifamily Supply Continues Rising

Units Recently Completed and Underway

Source: Dodge Data & Analytics

Note: 2022Q2 project starts are preliminary and subject to significant revision
Multifamily Economic and Market Commentary

Tim Komosa

Senior Manager

Multifamily Economics and Strategic Research

August 2022

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Economic and Strategic Research (ESR) Group included in 

these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number

of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. 

Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it 

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Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, 

opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date 

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