Mid-Sized Cities In Arizona & Texas Lead The Country For Premier Apartment Living

• Arizona shows a tendency toward luxury living with Phoenix suburbs building almost exclusively high-end apartments over the past decade.
• 97% of the new premier apartment communities in the US have fitness centers, 90% have club houses, and 83% have pools.
• The largest luxury apartments are being built in Lubbock, TX (1,100 sq. ft. on avg.), followed by Buffalo, NY, and Bakersfield, CA.
• Houston, Texas, built the largest number of luxury apartments over the past 10 years – 72K, followed by NYC and Austin.

Apartment construction in the U.S. is on an upward trend, with more than 3.1 million new units delivered over the last decade across the country. 2021 has been the peak year of new apartment supply as about 417K new units entered the market, up 12% year-over-year.

In an effort to respond to the growing need for more housing and inclusive environments, most cities have supported the construction of new apartments, particularly in fast-developing urban hotspots like Houston, Atlanta and Seattle. All these move-ins created extra demand for self storage, which resulted in a perfect background for the self storage industry to thrive. In fact, self storage development activity boomed in all the top 20 cities where most apartments were delivered. Houston, the city that saw the most apartments delivered between 2012 and 2021 (77K units), also amplified its self storage inventory by no less than 4M square feet.

Aside from amping up residential and self storage inventories and allowing tight markets to cool down prices, the apartment development market has also been intensifying the amenities arms race and current buildings are able to satisfy even the most discerning tastes. In fact, the vast majority of the large-scale apartment complexes built in the last decade qualify as premier communities that feature both premium services and hi-tech amenities. According to our latest analysis of Yardi Matrix data, which includes a patented property ratings categorization, 86% of the new apartments delivered over the past decade across the country are classified as luxury dwellings.

The Sun Belt takes the lead in premier apartment construction

As people remain renters for longer than before, their expectations of what their homes must offer have also changed and developers have rushed to deliver – a trend that ultimately reshaped the face of the apartment market. Resort-like pools, tennis courts and putting greens, pet spas with dog pools and washing stations, business lounges and EV charging stations are now the new normal in many of the new apartment communities around the US. Naturally, variations occur, and some places make it easier than others for renters to enjoy the perks of modern renting.

To identify the best cities for amenity-rich living in the US, we’ve turned to data from our sister division, Yardi Matrix, and analyzed apartment deliveries in the 100 biggest cities in the US from 2012 to 2021.

Based on the ratio of high-end apartments out of the total deliveries in the last 10 years, it’s cities in Arizona, Texas, California and Nevada that shifted decisively toward premier living over the last decade. The cities that came out on top are not only gateway cities but also suburbs and satellite cities that can now easily vie with large urban hubs in providing premier lifestyles.

Gilbert, Chandler and Scottsdale, AZ, building almost exclusively high-end apartments for over a decade

Arizona and Texas became the poster children for urban growth over the past decade – both states saw, and continue to register, consistent incoming migration. As a result, cities in both states went through unprecedented economic and population growth, and the prosperity also translates into an increased appetite for rental apartments that provide superior living conditions for their residents.

Gilbert, Arizona, ranks first nationally in terms of luxury apartments – more than 4,000 units came online in the last decade, and they all offer top-of-the line amenities. The city’s population experienced a major boom, from around 210K people in 2012 to around 250K residents now.

In line with what is happening in the Phoenix metro area as a whole, Gilbert has attracted many businesses, which has allowed this small East Valley suburb to thrive. Companies such as Go Daddy Software, Banner Health and Deloitte are just some of the major employers in the city. The local unemployment rate stands at a very low 2.1%, signaling an employee-driven job market.

The apartment market is surely set on responding to the growing demand. The new Gilbert apartment communities come equipped with a whole set of lifestyle-centered amenities, from spas and swimming pools to club houses, business centers, gardens, and playgrounds. In addition to relaxing common areas, they also provide more living space. In Gilbert’s case, apartments that fall under the “luxury” label have an average size of over 1,000 square feet, about 250 square feet bigger than those in the non-luxury category.

Elevation San Tan, for example, a Gilbert luxury complex with almost 300 units, offers many apartments of 1,000 square feet and over – up to a very generous 1,400 square feet. But, more than the sheer size of the apartments, the luxury community provides access to a wide range of amenities. These vary from smart features on locks, lights and thermostats, pools with cabanas, fitness centers and social lounges to more unique ones like dog parks, pet grooming rooms and bicycle repair shops.

The other two Arizonan cities in the top 20, Chandler and Scottsdale, rank second and fourth, respectively, for luxury apartment construction, with 99% and 98.5% of the units built during the past 10 years being premier apartments. Overall, Chandler saw the addition of over 6,800 new units over the past decade, while Scottsdale added 8,600 apartments to the local inventory. Luxury apartments in Chandler and Scottsdale, averaging 970 and 983 square feet, respectively, are about 200 square feet bigger than their non-luxury counterparts and feature a host of extra amenities including outside storage.

D-FW scores three positions among the top 10 cities for high-end apartment living

The Dallas–Fort Worth Metroplex represents a very fertile ground for premier apartment complexes. Plano and Irving, along with the city of Dallas itself, made it among the top 10 cities that mostly built luxury rentals over the last decade.

Plano, Texas, ranks first among the Texan cities and third nationally, with 98.5% of its 8,300 new apartments offering top-notch living.

Located just 20 miles from downtown Dallas, Plano has been gaining a lot of accolades lately as it boasts both a business-friendly environment as well as a good standard of living that got it a respectable 9^th place in a recent list of the best cities to live in America. The local employment scene includes Siemens, Cigna and PepsiCo, as well as new companies that eye Plano for future expansions or relocations. Among others, telecommunications equipment firm DZS recently announced plans to move its headquarters from Oakland, California, to Plano. The easy access to well-paying jobs – the median income in Plano is almost $66K per year – is one of the factors that fuel the appetite for premier living.

Newly delivered apartment complexes in Plano, such as Opal Legacy Central, are drawing in renters with a combo of generous floor plans and amenities that include, among others, culinary lounges with full kitchen and pizza ovens, resort-type pools, sky-deck clubrooms and co-working spaces.

Alongside young professionals who can easily commute to the many job centers in D-FW, Plano is particularly attractive for families with children who can benefit from the good school districts and the many kid-friendly activities in the area.

Irving, Texas, ranks 6^th for luxury apartments, with 97% of the over 5,600 apartments built since 2012 showcasing top-rated amenities.

The city of Dallas itself has been growing by leaps and bounds across all sectors of real estate and the apartment market is no exception. No less than 55,000 units have been delivered in Dallas over the last decade, with 96% of the new supply being luxury apartments. Moreover, as the population swelled and moving activity intensified in Dallas, the self storage sector joined multifamily real estate in its boom over the last 10 years. In fact, the Dallas-Fort Worth metro area leads self storage development in the US, with no less than 23M square feet of space delivered since 2012. This influx of new space brought per capita figures up to 7.4 and has allowed street rates to remain on the affordable side. A 10'x10' storage unit in Dallas currently rents for $118/month. Meanwhile, the same type of storage unit in San Francisco – a market that’s massively undersupplied at 2.5 square feet per person – goes for $272/month on average.

Another of Texas’s powerhouses, Houston, didn’t crack the top 10 but it still landed a great 13^th position among the cities with most high-end apartment options. 94% of the almost 77K apartments built here in the past decade come with once-exclusive, now-baseline, amenities including fitness centers, lap pools and business centers. Additionally, new units located in top-rated properties are about 137 square feet bigger on average than non-luxury units.

Orlando, Florida, built over 30K luxury apartments over the past decade

Orlando has always been big on tourism but it’s now increasingly becoming a business hub with a healthy job market. In a commendable feat, the Orlando area had the highest number of private sector jobs among all the metro areas in the US over the year up to March 2022 as well as the fastest private sector over-the-year job growth rate. Incomes hover around $43K per year, with companies such as KPMG, Sonesta, Disney and InnovaCare Health having recently announced plans to add jobs to the local employment market.

In an effort to respond to the growing demand for housing, almost 31,000 new units have been added in the last ten years to the local housing stock. 97% of the new apartment supply in Orlando can be classified as luxury apartments, making it fifth in the nation for premier apartment living. Besides excellent amenities, these apartments also provide, on average, 140 square feet more space than the non-luxury ones.

Apartment communities such as The Julian are redefining renters’ wants and needs in Orlando. The artsy interior design blends with amenities that include a rooftop pool and clubhouse, work from home spaces, and courtyards that allow residents to relax outdoors.

Tourist destinations Virginia Beach, Chesapeake make it to the top 10 cities for luxury apartments

Virginia Beach and Chesapeake rank 8^th and 9^th respectively, each with around 95% of all the apartments built since 2012 being luxury apartments. Both cities have local economies relying on tourism and, apart from hotels and motels, rental apartments are also in demand, with retirees and other categories of Americans favoring temporary relocations to these areas, and many of them being willing to pay extra for great amenities and more space. Virginia Beach built around 6,200 new apartments over the past decade, while almost 2,200 units were added to the local inventory in Chesapeake during the same period.

Luxury apartments in both cities are on the large side – 1,000 square feet in Virginia Beach and 1,036 square feet in Chesapeake. About 16% of the luxury apartments in Chesapeake have access to a golf course, the highest share among the country’s top 100 biggest cities.

Wichita lures in lifestyle renters with amenity-laden communities

Some of Wichita’s best attributes are an affordable cost of living and a dynamic economy centered around manufacturing and aviation, with companies such as Spirit AeroSystems, Cessna, Bombardier Learjet and Koch Industries being major employers in the area.

One attribute for which Wichita, Kansas, might not be on everyone’s radar is luxury living – however, almost 95% of the over 2,600 apartments built in the city over the past decade are premier apartments, helping the city rank 10^th nationally. Luxury apartments in Wichita are, on average, 130 square feet larger than the non-luxury units.

One of Wichita's recent premier communities, 225 Sycamore, offers features such as an infinity-edge pool, a golf simulator, a sea salt sauna, a hammock garden and much more. Similarly, the student housing sector in Wichita is also aiming to impress. The Seventeenth, a multi-building apartment complex that caters mainly to college students, offers a mix of stylish amenities and eco-friendly features, including lounge pools, sand volleyball courts, grilling stations, stainless steel appliances and smart thermostats.

Jersey City’s high-end apartments provide significantly more floor space than regular units

Jersey City has long been a favorite destination for New Yorkers in search of less hassle and cheaper housing, all within a comfortable commute from NYC’s financial district, and it’s one of the factors that have been keeping the local housing market on fire.

Construction activity has been intensifying in Jersey City, with more than 18K apartments built here over the past 10 years. Among those, almost 95% can be classified as high-end. In addition to all-inclusive common grounds, the units in luxury communities offer living spaces that come with 200 square feet more floor space than regular apartments.

Premier living surges in the South led by Atlanta, GA, Nashville, TN, and Charlotte, NC

Three of the most in-demand cities in the South made it into the top 20 of cities with the highest proportion of luxury apartments built during the decade starting in 2012. Atlanta, GA, a city receiving lots of attention lately from new businesses and residents alike, ranks 12^th with 94.4% of the more than 48K apartments built over the past 10 years being luxury apartments. The average size of the premier apartments in Atlanta stands at 980 square feet, about 80 feet larger than the non-luxury ones.

Nashville, TN, which, apart from its entertainment industry, is very active in sectors such as tech and health care, also makes it into the list, ranking 18^th.  93% of the almost 25K apartments built in Nashville during the past decade are luxury apartments.

Charlotte, NC, ranks 19^th with a little under 93% of the decade’s almost 47K new apartments being luxury apartments. The construction of high-end units ramped up significantly throughout the past decade: while 62% of the apartments built in Charlotte in 2012 were premier apartments, most of the following years of the decade saw over 90% of the new apartments built being luxury ones.

Reno, NV, and Chula Vista, Anaheim in CA, at the forefront of high-end living in the West

Two cities in Nevada, Reno and Henderson, and three Californian ones, Chula Vista, Anaheim and Irvine, are among the country’s top 20 cities for luxury apartment construction.

Reno, Chula Vista and Anaheim rank 14^th, 15^th and 16^th, with percentages of luxury apartments out of those built during the past decade hovering around 94% and 93% respectively. Chula Vista is also building the largest luxury apartments among the top 20 cities, with an average size of 1,045 square feet.

Renter preferences are increasingly turning to high-end living. In a trend that’s been recently amplified by pandemic-triggered challenges, our homes have been getting more attention, including the amenities that can make our lives easier and more agreeable, as well as more space at home. The multifamily sector is adjusting, building apartments that can satisfy modern needs – 46% of the luxury apartments in the country’s top 100 biggest cities were built during the past decade.

Top 100 US Cities for High-End Apartment Living

Rank	City	State	Total Inventory	Luxury Apartments	% Luxury	Average Size Luxury	Average Size Non-Luxury	Self Storage Per Capita	Self Storage Rates
1	Gilbert	AZ	4,029	4,029	100%	1,021	773	8.3	124
2	Chandler	AZ	6,852	6,775	99%	971	776	8.3	144
3	Plano	TX	8,336	8,214	99%	945	883	12.4	105
4	Scottsdale	AZ	8,606	8,475	98%	983	785	10.2	179
5	Orlando	FL	30,953	30,097	97%	1,019	877	27.4	117
6	Irving	TX	5,629	5,461	97%	923	797	8.1	101
7	Dallas	TX	55,297	53,165	96%	918	791	7.4	118
8	Virginia Beach	VA	6,206	5,901	95%	1,000	937	12.8	108
9	Chesapeake	VA	2,184	2,074	95%	1,036	886	10.4	111
10	Wichita	KS	2,620	2,484	95%	897	766	7.3	85
11	Jersey City	NJ	18,051	17,103	95%	859	651	3.6	214
12	Atlanta	GA	48,227	45,515	94%	980	903	10.5	153
13	Houston	TX	76,674	72,196	94%	961	824	11.3	97
14	Reno	NV	6,059	5,703	94%	999	769	18.8	120
15	Chula Vista	CA	3,363	3,153	94%	1,045	770	6.7	185
16	Anaheim	CA	3,789	3,535	93%	939	809	3.9	193
17	Henderson	NV	7,726	7,190	93%	997	855	9.7	135
18	Nashville	TN	24,518	22,798	93%	880	863	5.5	122
19	Charlotte	NC	46,612	43,321	93%	968	870	8.1	101
20	Irvine	CA	11,222	10,414	93%	922	883	10.6	163
21	Jacksonville	FL	19,503	18,088	93%	1,022	867	10.1	119
22	Tampa	FL	20,114	18,616	93%	1,019	836	16.7	121
23	Riverside	CA	2,434	2,245	92%	921	801	11	134
24	Austin	TX	64,808	59,218	91%	919	774	10.1	120
25	Arlington	VA	13,481	12,284	91%	893	794	2.6	232
26	Lincoln	NE	4,965	4,510	91%	1,006	887	6.3	93
27	Durham	NC	8,244	7,483	91%	972	881	10.2	102
28	Washington	DC	43,478	39,359	91%	792	712	2.7	163
29	San Antonio	TX	51,720	46,804	90%	939	794	10.5	111
30	Fort Wayne	IN	2,281	2,063	90%	1,016	854	8.2	98
31	Arlington	TX	2,791	2,516	90%	911	811	9.5	98
32	San Jose	CA	18,820	16,898	90%	927	756	4.3	173
33	Garland	TX	4,756	4,248	89%	894	862	8.2	98
34	Kansas City	MO	14,678	12,966	88%	948	826	6.1	109
35	Tulsa	OK	3,505	3,094	88%	953	781	11.4	80
36	Raleigh	NC	21,319	18,783	88%	983	893	10	93
37	Winston-Salem	NC	3,477	3,061	88%	1,007	841	3.4	85
38	Denver	CO	43,050	37,860	88%	892	751	6.9	131
39	Boston	MA	15,657	13,720	88%	840	688	1	191
40	Fort Worth	TX	24,166	21,079	87%	941	827	9.2	101
41	St. Petersburg	FL	7,029	6,129	87%	923	811	2.3	164
42	Milwaukee	WI	6,015	5,218	87%	912	766	4.9	99
43	Cincinnati	OH	7,524	6,505	86%	964	813	11.6	100
44	Las Vegas	NV	16,317	14,101	86%	989	792	20.1	128
45	Richmond	VA	12,106	10,451	86%	876	838	17.2	109
46	Chicago	IL	45,369	39,160	86%	839	675	4.2	131
47	Colorado Springs	CO	7,462	6,389	86%	949	765	13.1	113
48	Boise City	ID	3,956	3,365	85%	925	818	16.4	114
49	Madison	WI	9,655	8,201	85%	920	806	5.3	107
50	Phoenix	AZ	24,139	20,496	85%	924	701	6.1	129
51	Aurora	CO	5,128	4,353	85%	951	768	7.6	118
52	Omaha	NE	7,346	6,227	85%	975	867	9.2	84
53	Mesa	AZ	4,502	3,794	84%	984	749	9.9	111
54	New York City	NY	72,892	61,323	84%	758	688	2.6	252
55	Pittsburgh	PA	9,146	7,646	84%	870	772	10.4	117
56	San Diego	CA	23,800	19,785	83%	960	729	4.3	182
57	Baton Rouge	LA	5,385	4,475	83%	1,050	866	19.6	102
58	Los Angeles	CA	43,158	35,839	83%	881	707	1.6	258
59	Miami	FL	36,492	30,231	83%	953	769	18	183
60	Philadelphia	PA	19,638	16,209	83%	857	745	3.5	152
61	Cleveland	OH	7,676	6,329	82%	962	704	4.5	113
62	Baltimore City	MD	13,739	11,317	82%	901	753	6.6	126
63	Norfolk	VA	3,414	2,807	82%	933	843	8.1	100
64	Minneapolis	MN	24,225	19,907	82%	861	643	4.3	113
65	Tucson	AZ	6,918	5,668	82%	1,018	702	11.1	117
66	Lexington	KY	4,092	3,322	81%	1,040	818	6.6	107
67	Long Beach	CA	3,045	2,465	81%	941	705	4.7	194
68	Oklahoma City	OK	8,313	6,719	81%	925	810	10.5	78
69	Corpus Christi	TX	4,223	3,403	81%	982	811	10	99
70	Glendale	AZ	1,658	1,331	80%	971	700	8.7	119
71	Greensboro	NC	5,469	4,374	80%	1,014	869	11.3	88
72	Columbus	OH	22,936	18,338	80%	912	863	5.6	93
73	Oakland	CA	9,903	7,900	80%	822	661	3.6	212
74	Lubbock	TX	5,627	4,376	78%	1,096	799	15	88
75	Memphis	TN	6,928	5,362	77%	982	870	8.4	93
76	Louisville	KY	14,719	11,324	77%	1,031	867	9.6	93
77	Indianapolis	IN	12,798	9,669	76%	950	852	8.4	89
78	St. Paul	MN	6,535	4,929	75%	889	763	1.6	153
79	Seattle	WA	53,228	38,885	73%	735	619	4.9	195
80	New Orleans	LA	6,318	4,506	71%	912	847	6.1	153
81	Saint Louis	MO	8,648	6,156	71%	933	794	8	110
82	Buffalo	NY	2,636	1,872	71%	1,066	739	3.5	121
83	San Francisco	CA	22,180	15,546	70%	827	657	2.5	272
84	Portland	OR	26,426	18,309	69%	789	668	7	152
85	Sacramento	CA	5,225	3,588	69%	956	772	11.8	155
86	Santa Ana	CA	2,783	1,858	67%	998	796	3.7	181
87	Bakersfield	CA	2,034	1,334	66%	1,061	832	13.2	80
88	Detroit	MI	4,298	2,774	65%	891	757	1.8	156
89	Hialeah	FL	1,881	1,175	62%	957	766	4.8	163
90	Newark	NJ	2,720	1,645	60%	865	701	2.3	134
91	Fremont	CA	2,397	1,420	59%	953	795	4.7	171
92	Albuquerque	NM	5,650	3,170	56%	932	755	9.5	108
93	Fresno	CA	2,672	1,344	50%	1,054	859	9.2	112
94	Toledo	OH	1,876	790	42%	1,006	769	5.8	90
95	El Paso	TX	6,705	2,673	40%	923	814	6.3	100
96	Spokane	WA	3,792	1,424	38%	1,034	837	12.1	121
97	North Las Vegas	NV	803	265	33%	1,004	836	8.3	122
98	Stockton	CA	761	233	31%	980	773	7.3	135
99	San Bernardino	CA	413	104	25%	982	755	6.7	115
100	Honolulu	HI	1,349	269	20%	941	616	3	263

StorageCafe analysis of U.S. Census Bureau and Yardi Matrix data

What the experts say

Robert M. Aydukovic, M.S., Teaching Specialist for the Construction Management in the School of Planning, Design and Construction; Co-Coordinator, Real Estate Development and Construction Graduate Certificate Program, Michigan State University

Do you think that the apartment construction industry in the US meets current housing needs?

No. The United States is in a housing deficit and has been since the early 2000’s. The housing shortage we are seeing now is really a factor of several macro trends:

Read more....

Harold Hunt, Ph.D., Research Economist, Texas Real Estate Research Center, Texas A&M University

Do you think that the apartment construction industry in the US meets current housing needs?

I can only speak for Texas, but I believe Texas is behind the curve in new apartment construction.

Read more....

Doug Ressler, Business Intelligence Manager - Yardi Matrix

Which are the best apartment markets for new development in the US at the moment?

As preferred relocation destinations massively attracting young professionals – tech talent in particular – both Texas and Arizona have amped up their construction games in the major urban hubs and their feeder cities. And although still far from meeting demand, local markets are abuzz with activity and new rental options. High-end amenities – including working-from-anywhere advantages like high-speed internet and sound-proof spaces – have now become the standard in the newest apartment communities and can act as deal breakers for lifestyle renters.

Read more....

Methodology

This analysis was done by StorageCafe, an online platform that provides storage unit listings across the nation.

To come up with the list of the most luxury oriented markets, we considered the country’s top 100 cities by population. We excluded San Juan, PR, Laredo, TX, Anchorage, AK, and Spring Valley, NV, due to a lack of data.

The national apartment construction data comes from our sister division Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors..

We looked at apartment construction evolution in the country’s top 100 cities from 2012 to 2021. Only apartment complexes with 50+ units were included in our research.

We ranked the cities based on the proportion of luxury apartment units as a percentage of total apartments built over the past decade.

Luxury apartments are defined as apartments with the following improvement rates: A+, A, A- and B+, based on a patented property rating categorization from Yardi Matrix. 

The data regarding the number of apartments built, apartment improvement rates, apartment sizes, self storage rates and self storage per capita were taken from Yardi Matrix.

The population data was taken from the US Census.

Fair use and distribution

This study serves as a resource for the general public on issues of common interest and should not be regarded as investment advice. The data is true to the best of our knowledge but may change if amendments to it are made. We agree to the distribution of this content but we do require a mention in return for attribution purposes.