Most New Units Since 1972: Developers Building Apt Units at Record-Setting Pace

A building boom. That’s what the U.S. apartment market is seeing this year, according to the latest research from Yardi Matrix.

In a report released in late August, Yardi Matrix said that construction crews will bring 420,000 new apartment units to the United States this year. That’s a 50-year high. According to Yardi, the last time apartment completions surpassed the 400,000-unit mark was in 1972.

And three Midwest markets are expected to rank among the busiest 20 major metropolitan areas this year when it comes to new apartment units: Nashville, Chicago and Minneapolis-St. Paul.

The New York metropolitan area is projected to deliver the most apartment units in 2022, beating out Dallas-Fort Worth for the top position for the first time since 2018. Overall, developers in half of the country’s top-20 metropolitan areas are now on an apartment building spree, with these metros expeced to hit their five-year highs in new multifamily construction this year.

“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 Yardi Matrix, in a written statement.

What’s behind this construction boom? Yardi Matrix points to pent-up demand for multifamily units across the country. This demand has only risen as many renters hold off on buying homes as inflation and interest rates rise.

In the Midwest, Nashville ranks as the hottest market for new apartment construction. Yardi Matrix says that this Tennessee city will deliver 9,620 new aparment units in 2022, ranking it as the 13th busiest new-construction market.

Chicago will see 8,573 new apartment units by the end of this year. That places the city as the 16th busiest in terms of new multifamily construction. Expect 6,266 new apartment units in the Minneapolis-St. Paul market, making it the 19th busiest new-construction market in the country.

Texas, as usual, was well-represented. Yardi Matrix reported that the Dallas market will see 23,571 new apartment units in 2022, placing it second only to the New York metro market. Austin ranked fourth on Yardi Matrix’s list, with 18,288 new apartment units projected to be delivered here during the year, while Houston ranked fifth with an expected 17,759 new apartment units.

Yardi Matrix said that the Houston market will see the highest number of apartment completions that it has seen in the last five years. Austin climbed three positions on the Yardi Matrix list this year to inch past Houston.

Playing in the ‘Major Leagues’: Meredith Cullen Moves to Cushman & Wakefield, Tackles ‘Red-Hot’ Land Market

Meredith Cullen has been interested in the Texas land market since he was a kid, driving around to scout tracts with his father Roy.

“That’s what my dad was into and that was his talent: finding out where the path of growth is,” says Cullen, who leads Cushman & Wakefield’s land brokerage team in Houston along with David Cook.

Roy passed that talent and passion to Meredith, who’s using it to ignite what is already a red-hot market.

“It’s on fire,” Cullen says. “Right now, there’s a lot of opportunity.”

That opportunity only exists if you know where to look like he does. Even then, it’s become a challenge in the past year.

“If I could find 500 acres maybe 10 miles past the Grand Parkway between I-45 and US 59, I could sell that all day long for $50,000 an acre,” says Cullen. “Right now, it’s just hard to find that product.”

What’s driving the demand? He describes it as a perfect storm of behaviors generated by and during the pandemic. First, we all know about the exponential increase in online buying, which created a need for last-mile distribution locations.

“I have a lot of clients looking for industrial land go off-market to try
to find these pieces,” Cullen explains. Click to read more at

Tops in Texas: What to Watch for in the State’s Industrial Markets

Even to those who’ve worked in the industrial real estate market for decades, the figures generated over the past year are staggering. “It’s as red-hot and active as I’ve seen it in my career,” says Reid Goetz, Senior Vice President at Hillwood. “That’s both on the demand side and the construction and capital market side.”

Goetz is responsible for the industrial development and leasing within AllianceTexas, a 27,000-acre, master-planned and mixed-use development in North Texas that produced 53 million square feet of commercial development to date. “We have land holdings that will allow us to develop another 36 million square feet of industrial,” Goetz shares.

Since AllianceTexas got its start more than 30 years ago, it had a leg up on some of the new developments hoping to capitalize on the industrial boom, many of which are now running into supply chain issues with materials, including steel. Click to read more at Click to read more at

‘Go time’ in Fort Worth: City Elects New Leadership in the Midst of Explosive Growth

Long in the shadow of the ‘D’ of DFW, Fort Worth has emerged into the spotlight in a huge way.

“Fort Worth’s growth over the past decade has been tremendous – our population has grown by 25% since the 2010 census, and we’re now the 12th largest city in the country,” says Robert Sturns, Director of the City of Fort Worth’s Economic Development Department. “If this growth continues, Fort Worth is projected to have over 1 million residents by 2025.”

Location is a huge factor in that growth. Fort Worth is home to DFW Airport, Alliance and Meacham airports, as well as railways, which are anchored by companies such as BNSF. Major highways in and around the city also simplify travel around the Metroplex. Combined with the state’s pro-business approach and low cost of living, that makes Fort Worth a destination for major companies and the employees who work for them.

“With employers like American Airlines, Bell, Alcon, and many others – plus a thriving community of small businesses that are supported and celebrated by locals – there’s a lot of opportunity here,” Sturns says.
He adds with so much new talent flooding the market, the city is focused on supporting those individuals as they start their professional lives here. Click to read more at

Here’s Why The Leverage That We Can’t Track Matters

Despite all we hear about asset classes increasing in value across the board and the unprecedented strength of the U.S. economy, as a real estate entrepreneur and former professional trader, here’s what keeps me up at night: I believe we only know part of the story and that the piece we’re missing — our current inability to account for “invisible” or “hidden” leverage can have significant implications for our country’s economic health.

The hitch? We likely won’t know until it’s too late.

In a nutshell, “leverage” is the term for funds that are borrowed (outright or against an asset) with a goal of using those funds for further financial gain. Applied wisely, leverage has fueled wealth and economic growth for centuries; however, as with any debt, when things go south, borrowers can find themselves underwater, financially speaking. This is simply the reality of our economic system.

The risk is amplified when investors leverage assets that are inherently more difficult to track — such as cryptocurrencies, fine art, collectible cars and wine collections — and that are likely used far more often than our economic data shows. Trickier still, this kind of borrowing masks the multiplier effects of risk and debt, and it tends to be prevalent during times like these when we’re feeling optimistic and asset valuations “seem” to be on a never-ending upward trajectory. Click to read more at

Suburban Commercial Real Estate Boom Continues Full Steam Ahead as Dallas Office Market Struggles

In June, a group of public and private stakeholders approved a new framework plan to build a $130 million performing arts center at the Hall Park development in Frisco. The new venue would not only bring a large, world-class concert hall to the fast-growing Texas city, but it’s reflective of the investment and interest in Frisco and would become yet another major cultural amenity in a city increasingly known for its recreational and amusement offerings.

The plan for the performing arts center is just a drop in the bucket when compared to the investment in Frisco over the last decade. For instance, The Fields mega-development, which will deliver an expansive office park, thousands of new residences, hotels and more on a 2,500-acre site is anticipated to cost upwards of $10 billion. And the development already has a major tenant lined up as the future home of the PGA of America.

What’s happening in Frisco is something that other municipalities could only dream of — the city’s population has bloomed from 110,000 in 2010 to roughly 210,000 today. Frisco is frequently cited as the fastest growing city in the country and it’s also home to the 91-acre Dallas Cowboys’ headquarters dubbed The Star, the NCAA Division I football stadium Toyota Stadium, Comerica Center arena, Dr. Pepper Ballpark, the National Soccer Hall of Fame, the National Videogame Museum, and more. Click to read more at