Southern US Takes The Lead For Downtown Apartment Construction, With Atlanta At The Forefront

• Downtowns have been thriving all across the US over the last decade but southern states amp up the game. Four of the top five most active downtown areas for new apartment construction are in the South.
• By sheer numbers, Atlanta, GA, ranks first for apartments built in a downtown area over the past 10 years, with over 21,500 apartments added to the local inventory.
• Nashville, TN, St. Petersburg, FL, and Phoenix, AZ, stand out as the cities with the largest shares of new downtown apartment development. In all three cities, housing in 50+ unit buildings built between 2013 and 2021 represents more than 70% of the large-scale apartment inventory. Tampa and Miami in Florida follow close behind at 69% and 66%, respectively.
• Downtown apartment construction is a catalyst for self storage development: Atlanta and Houston rank #1 and #3 for new apartments and #1 and #2 for new self storage space.

Downtown living can be quite polarizing – some people love the hustle and bustle of city center areas while others tend to avoid them in favor of quieter neighborhoods a little further out. But even with the rapid development of life in the suburbs, downtown living never lost its shine. In fact, according to our latest study, the country’s major cities experienced a resurgence of apartment construction in their central neighborhoods over the last decade.

To see which urban cores are brimming with new housing options, we looked at the downtown areas of the country’s 100 largest cities and ranked them based on the number of multifamily units delivered over the past 10 years.

Overall, across the 100 cities analyzed, about 391K downtown apartments were built from 2013 to present day, representing 37% of the total inventory of multifamily units in those areas. The rebirth of the American downtown as a place to live comes in response to people’s changing attitudes and lifestyle preferences. Walkability has gotten priority over car-dependency, and proximity to jobs, shops and entertainment is particularly important for a large group of people.

From long-established urban hotspots in Atlanta, Miami and Denver to budding communities in Nashville and Raleigh, downtown apartment construction is flourishing throughout the country. Self storage development is also getting a huge push out of the buzzing apartment scene, with nine of the top 10 markets for new apartments also seeing significant self storage development over the last decade. Atlanta leads the pack in terms of both new apartments and self storage. Looking at apartment inventory expansion, Nashville, TN, steals the national spotlight with 79% of its downtown apartments built in the last 10 years.

High-flying Atlanta increases its downtown apartment inventory by 50% over the past decade

Atlanta, GA, is one of the country’s fastest growing cities, and the expansion of its downtown multifamily sector confirms the trend. It ranks first among the 100 largest cities in the US for new apartment options, with the city’s downtown area having seen the addition of no less than 21,500 new apartments from 2013 to today, representing more than half or its total existing inventory. Moreover, downtown Atlanta has another 7,000 new apartments currently under construction.

The best year for downtown apartment construction in Atlanta was 2017, when over 3,700 new apartments were added to the local inventory. Although the pandemic temporarily hampered the sector, with just 1,300 new units added in 2020, the decrease in activity was short lived, and last year over 2,700 new apartments were built in downtown Atlanta.

Downtown Atlanta’s revival is essentially linked to the city reinventing itself as “the business center of the Southeast,” with 1.9 million jobs expected to be created by 2040, according to the city’s Invest Atlanta economic development authority. Many of the jobs created in Atlanta are in well-paying sectors such as life sciences, engineering and corporate management, attracting a population of young professionals that naturally favor downtown living in order to be close to jobs and entertainment amenities.

One compromise that downtown living usually entails is a lack of space at home, as apartments tend to be smaller in urban cores. But the city’s strong self storage sector can help renters comfortably make up for it. There are plenty of options for those seeking to maximize space in downtown Atlanta, with almost 1.6M square feet of self storage space in the area. Average street rates for 10’x10’ self storage units hover around $145 in downtown Atlanta.

Los Angeles, CA ranks second nationally for the number of apartments built in its downtown area over the past decade, over 19K, representing about 46% of the total inventory. The trend is holding strong this year as well, with 900 units having already been delivered in 2022, and another 4,700 units in the pipeline to be completed in the next couple of years. While downtown LA saw under 900 apartments built in 2013, the number more than quadrupled by 2019, with over 3,800 new apartments delivered in the area that year.

Southern US cities work hard to see their downtown areas grow

Houston, TX ranks third for downtown apartments built over the past decade, with over 15,600 units, representing almost two thirds of the existing inventory in the area. The city’s significant expansion of its downtown housing stock was a long time in the making, with supporting programs such as the Downtown Living Initiative committed to improving the local economic and development scene.

An additional 2,700 apartment units are currently under construction in Houston's downtown districts, with completion dates spanning approx. two years.

Another southern hub, Charlotte, NC, added almost 13K new apartments to its center city district, and the new units built over the past decade make up roughly 57% of the total existing stock. The best year of the decade for multifamily construction in Uptown Charlotte was 2021, with over 2,200 new apartments delivered. Construction activity doesn’t show any signs of slowing down, as an additional 3,500 units are currently under construction.

Charlotte has in fact been following a well-established plan since 1966 to promote and streamline downtown housing development. The latest update, which provides a framework for growth until 2040, was voted by City Council in late 2021.

Another North Carolina city that fares well for downtown multifamily construction is Raleigh, ranking 15^th, with 8,300 new apartments over the past 10 years, and another 3,600 in the pipeline. This puts Raleigh 6^th nationally for new apartments under construction in the downtown area.

Already well-known as a popular tourist destination and a hub of finance, arts and entertainment, Miami, FL, is expanding its downtown housing inventory to accommodate an influx of new residents. It ranks fifth for multifamily construction over the past decade, with around 12,400 new units delivered, of which over 2,200 were built last year alone. Miami’s downtown area has another 5,600 units currently under construction.

Nashville, TN lands on the sixth spot nationally for the number of new units added to its downtown – over 11K apartments over the past decade. Looking strictly at the expansion of its downtown living situation, Nashville performed best among the country’s largest 100 cities. The 11K apartments added over the last decade represent almost 80% of the area’s total apartment inventory. Moreover, an additional 4,800 apartments are currently under construction.

St. Petersburg, FL and Phoenix, AZ, are other cities that had a massive share of their downtown multifamily inventory built within the past ten years: 77% and 73%, respectively.

Jersey City is the downtown multifamily construction champion of the East Coast

The first East Coast city to make the top 20 list is Jersey City, NJ, ranking 8^th nationally, with over 10K apartments built from 2013 to 2022 in its downtown area, representing 60% of the total inventory. The best year for downtown apartment construction in Jersey City was 2017, when almost 3,000 new apartments were built – however, 2022 is on track to be an excellent year as well, as almost 1,200 new units have already been delivered so far.

The NYC borough of Brooklyn ranks 9^th nationally, with its downtown expanding by 9,600 apartments over the past 10 years and another 4,100 units under construction right now.

One of only two midwestern hubs to land in the top 20 list, Minneapolis, MN, saw over 9,500 apartments built in its downtown area over the last 10 years. Chicago, IL is close behind on the 12^th position, with around 9,000 apartments built since 2013.

Massive apartment construction in downtown Atlanta and Houston boosted self storage development as well

Lack of space at home is one of the main reasons behind the growth of the self storage market. With urban cores becoming the place to be for an increasing number of renters, the need for more space transferred to downtown areas as well, and many developers rushed to deliver. 68% of the top 100 cities for new multifamily construction also saw a significant expansion of their self storage sectors.

Leading both apartment and self storage construction, Atlanta’s downtown area saw the addition of almost 671K square feet of self storage space from 2013 to 2022, while downtown Houston added more than 640K square feet of new space during the same period.

Top 20 Downtown Areas for Self Storage Construction

2013 to 2022

Rank	City	State	Self Storage Space Construction, 2013 to 2022 (sq. ft.)	Self Storage Inventory (sq. ft.)
1	Atlanta	Georgia	670,767	1,587,883
2	Houston	Texas	639,010	978,797
3	Raleigh	North Carolina	596,747	2,249,163
4	Irvine	California	570,836	1,232,049
5	Plano	Texas	536,434	2,054,770
6	Miami	Florida	530,778	747,233
7	New Orleans	Louisiana	475,390	1,030,773
8	San Antonio	Texas	430,812	2,130,680
9	Louisville	Kentucky	420,063	733,732
10	Baltimore	Maryland	413,006	948,664
11	Charlotte	North Carolina	403,690	723,391
12	Jersey City	New Jersey	389,516	515,473
13	Indianapolis	Indiana	347,965	690,976
14	Jacksonville	Florida	319,445	600,021
15	Richmond	Virginia	310,611	1,099,434
16	San Jose	California	307,916	1,352,633
17	Denver	Colorado	289,830	319,044
18	Scottsdale	Arizona	273,491	624,658
19	Fort Worth	Texas	273,131	907,638
20	Garland	Texas	269,151	539,803

StorageCafe analysis of Yardi Matrix data

Miami, FL, also experienced an active decade in terms of both apartments and self storage. The city has added more than 530K square feet of new storage space to its downtown area, representing 71% of its existing stock.

Check out downtown apartment construction activity in the 100 biggest US cities below:

Downtown Multifamily Construction in the Country’s Top 100 Cities

Rank	City	State	Downtown Area Zip Codes	Multifamily Units, 2013 to 2022	Multifamily Units, Total Inventory	Share of MF Units Built From 2013 to 2022	Self Storage Street Rate	Self Storage Space, 2013 to 2022 (sq. ft.)
1	Atlanta	Georgia	30303, 30308, 30309, 30313, 30318	21,508	41,191	52%	$146	670,767
2	Los Angeles	California	90012, 90013, 90014, 90015, 90017, 90021, 90058	19,342	42,170	46%	$214	200,060
3	Houston	Texas	77002, 77003, 77007	15,607	24,748	63%	$150	639,010
4	Charlotte	North Carolina	28202, 28204, 28206, 28208	12,836	22,550	57%	$101	403,690
5	Miami	Florida	33128, 33129, 33130, 33131, 33132, 33136	12,401	18,775	66%	$320	530,778
6	Nashville	Tennessee	37201, 37203, 37219	11,144	14,177	79%	$133	191,293
7	Denver	Colorado	80202, 80204	10,730	18,633	58%	$106	289,830
8	Jersey City	New Jersey	07302	10,236	17,005	60%	$217	389,516
9	Brooklyn	New York	11201, 11216, 11217, 11238	9,623	20,752	46%	$260	142,820
10	Minneapolis	Minnesota	55401, 55402, 55403, 55404, 55415	9,554	21,820	44%	$144	N/A
11	Baltimore	Maryland	21201, 21202, 21217, 21223, 21230, 21231	9,043	27,147	33%	$132	413,006
12	Chicago	Illinois	60601, 60602, 60603, 60604, 60605	9,031	18,379	49%	$158	239,258
13	San Diego	California	92101	8,696	16,782	52%	$194	N/A
14	San Antonio	Texas	78204 ,78205, 78206, 78207, 78209, 78210, 78212, 78215, 78216	8,373	31,409	27%	$121	430,812
15	Raleigh	North Carolina	27601, 27603, 27604, 27612, 27617	8,341	28,554	29%	$100	596,747
16	Philadelphia	Pennsylvania	19102, 19103, 19106, 19107, 19146, 191477	8,019	19,916	40%	$136	74,014
17	Tampa	Florida	33602, 33606	7,494	10,926	69%	$148	106,360
18	San Jose	California	95110, 95112, 95113, 95116, 95126	7,487	18,938	40%	$150	307,916
19	Richmond	Virginia	23219, 23220, 23223, 23224	7,329	23,685	31%	$119	310,611
20	Orlando	Florida	32801, 32803, 32805	7,264	11,828	61%	$164	172,229
21	Dallas	Texas	75201, 75202, 75207	7,162	15,042	48%	$188	101,741
22	Washington	District of Columbia	20001, 20005, 20036, 20037	6,831	22,322	31%	N/A	N/A
23	Kansas City	Missouri	64101, 64102, 64105, 64106, 64108, 64109	6,629	14,004	47%	$136	38,250
24	Fort Worth	Texas	76102, 76104, 76110, 76111	6,485	10,438	62%	$88	273,131
25	Boston	Massachusetts	02108, 02109, 02110, 02111, 02114, 02210	6,443	11,458	56%	N/A	N/A
26	Indianapolis	Indiana	46202, 46203, 46204, 46225	6,175	13,629	45%	$109	347,965
27	Cleveland	Ohio	44113, 44114, 44115	6,132	15,517	40%	$131	131,218
28	Oakland	California	94607, 94612	6,085	12,544	49%	$216	62,584
29	Phoenix	Arizona	85003, 85004	5,908	8,047	73%	N/A	N/A
30	Columbus	Ohio	43215	5,809	9,627	60%	$99	172,941
31	Irvine	California	92606, 92612, 92614	5,249	18,184	29%	$172	570,836
32	Seattle	Washington	98121	4,888	9,802	50%	$236	50,019
33	Plano	Texas	75023, 75074, 75075	4,565	16,146	28%	$100	536,434
34	New Orleans	Louisiana	70112, 70113, 70115, 70119, 70130	4,206	10,655	39%	$176	475,390
35	Austin	Texas	78701, 78703	4,144	7,275	57%	$203	152,025
36	Memphis	Tennessee	38103, 38104, 38105, 38126	3,748	14,004	27%	$113	N/A
37	Madison	Wisconsin	53703	3,503	7,530	47%	N/A	N/A
38	Louisville	Kentucky	40202, 40203, 40204, 40206	3,459	9,738	36%	$108	420,063
39	Des Moines	Iowa	50309, 50319, 50391, 50392	3,462	5,903	59%	$107	80,325
40	St. Paul	Minnesota	55101, 55102	3,454	7,525	46%	$141	171,630
41	Scottsdale	Arizona	85250, 85251, 85658	3,416	8,818	39%	$174	273,491
42	Pittsburgh	Pennsylvania	15219, 15222	3,258	7,597	43%	$159	N/A
43	Detroit	Michigan	48201, 48207, 48216, 48226	3,169	17,263	18%	$212	N/A
44	Portland	Oregon	97201, 97204, 97205	3,158	10,786	29%	N/A	N/A
45	Manhattan	New York	10007, 1001,3 10038, 10005, 10014, 10012, 10004, 10280, 10006	3,136	25,735	12%	$457	16,150
46	Jacksonville	Florida	32202, 32204, 32207	3,085	8,515	36%	$195	319,445
47	Omaha	Nebraska	68102, 68131	3,041	5,530	55%	$94	N/A
48	Durham	North Carolina	27701	2,576	4,816	53%	$138	160,891
49	Cincinnati	Ohio	45202	2,574	4,988	52%	$145	110,678
50	Fremont	California	94536, 94538	2,479	15,048	16%	$243	N/A
51	Virginia Beach	Virginia	23462	2,459	9,336	26%	$122	99,707
52	Reno	Nevada	89501, 89502, 89503, 89509, 89512	2,439	17,385	14%	$127	254,934
53	St. Petersburg	Florida	33701	2,361	3,049	77%	$218	N/A
54	Arlington	Virginia	22201	2,340	11,663	20%	$209	N/A
55	Sacramento	California	95811, 95814, 95816	2,213	5,782	38%	$175	57,000
56	Long Beach	California	90802	2,119	4,981	43%	$256	N/A
57	Oklahoma City	Oklahoma	73102, 73103, 73104, 73106, 73109, 73129	2,092	6,052	35%	$110	139,320
58	Arlington	Texas	76010, 76011, 76012	1,891	19,973	9%	$99	54,840
59	Las Vegas	Nevada	89101, 89104, 89106, 89110	1,730	19,962	9%	$116	191,377
60	Boise	Idaho	83702, 83706	1,706	5,857	29%	$135	87,193
61	Henderson	Nevada	89002, 89012, 89015	1,548	7,435	21%	$132	171,812
62	Winston-Salem	North Carolina	27101	1,529	3,387	45%	$78	64,125
63	Garland	Texas	75040	1,520	3,399	45%	$106	269,151
64	Norfolk	Virginia	23507, 23510, 23517	1,498	4,231	35%	$101	N/A
65	Newark	New Jersey	07102	1,442	5,214	28%	N/A	N/A
66	Lincoln	Nebraska	68508, 68510	1,331	2,348	57%	N/A	N/A
67	St. Louis	Missouri	63101, 63102	1,236	3,836	32%	N/A	144,750
68	Spokane	Washington	99201, 99202	1,114	3,183	35%	$109	55,938
69	Wichita	Kansas	67202, 67203, 67214	1,044	5,521	19%	$86	35,676
70	Tucson	Arizona	85701	969	1,744	56%	N/A	N/A
71	Lubbock	Texas	79401, 79411	956	3,235	30%	$120	N/A
72	Albuquerque	New Mexico	87102, 87104	931	3,438	27%	$127	101,502
73	Tacoma	Washington	98402	924	2,675	35%	$198	47,390
74	Corpus Christi	Texas	78401, 78404, 78405, 78407, 78408, 78409, 78411, 78415, 78416, 78417	902	7,878	11%	$100	210,720
75	Spring Valley	Nevada	89103, 89147	868	18,317	5%	$124	76,068
76	Chandler	Arizona	85225	766	4,940	16%	$126	256,800
77	San Francisco	California	94104, 94108, 94111, 94133	687	4,374	16%	$353	101,853
78	Chesapeake	Virginia	23322	678	1,220	56%	$121	N/A
79	Lexington	Kentucky	40507, 40508	618	3,271	19%	$98	59,797
80	Tulsa	Oklahoma	74103, 74119	558	1,678	33%	$81	87,519
81	Honolulu	Hawaii	96813, 96817	546	6,906	8%	$511	31,321
82	Colorado Springs	Colorado	80903, 80904, 80905	504	3,006	17%	$132	18,149
83	Buffalo	New York	14202, 14203	480	2,004	24%	N/A	N/A
84	Queens	New York	11355, 11354	478	9,617	5%	$238	252,561
85	Stockton	California	95202, 95203, 95204, 95205, 95206	446	3,279	14%	$130	N/A
86	Mesa	Arizona	85201	444	6,387	7%	$123	N/A
87	Toledo	Ohio	43604	409	3,253	13%	$98	159,934
88	Greensboro	North Carolina	27401, 27403	407	3,489	12%	$141	N/A
89	Santa Ana	California	92701	399	2,571	16%	$199	N/A
90	Fort Wayne	Indiana	46802	356	1,235	29%	$120	127,853
91	Chula Vista	California	91910, 91911	352	11,461	3%	$180	47,774
92	Fresno	California	93706, 93721	265	2,151	12%	$76	N/A
93	El Paso	Texas	79901	258	1,199	22%	N/A	N/A
94	Bakersfield	California	93301	237	1,581	15%	$71	N/A
95	Gilbert	Arizona	85234	228	1,287	18%	$115	171,029
96	Riverside	California	92501	205	810	25%	$144	N/A
97	Glendale	Arizona	85301	180	8,874	2%	$107	91,216
98	Hialeah	Florida	33010	175	820	21%	$121	197,659
99	North Las Vegas	Nevada	89030	120	2,918	4%	$91	N/A
100	Anchorage	Alaska	99501	50	1,957	2%	$220	N/A

StorageCafe analysis of Yardi Matrix data

Expert Opinion

Doug Ressler, Business Intelligence Manager - Yardi Matrix

What makes people want to live in downtown areas?

The massive shifts in housing preferences we’ve witnessed in relation to the health crisis are still bound to have ripple effects for years to come. The hybrid or remote working trend, for one, has created a context for a reversed type of migration – it’s not just the employees following available jobs and housing options anymore, but jobs and new construction coming to places where people want to live.

Places like Atlanta and Houston, which have long attracted workers with in-demand skills, have turned their urban cores into vibrant environments where residents can work, live and have easy access to after-work entertainment.

Methodology

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

The scope of the analysis was to identify the best downtown areas for new apartment construction. We based our research on the 100 largest cities by population in the US, according to 2020 population figures from the U.S. Census Bureau. We considered only the downtown area of each city, based on corresponding ZIP codes.

Data on downtown apartment and self storage development over the past decade (2013 to 2022) was sourced from our sister division Yardi Matrix. Yardi Matrix is 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.

The ranking is based on the number of multifamily units built in the downtown area of each city from 2013 to 2022. We also calculated the share of multifamily units and of self storage square footage built over the past decade out of the total inventory in each downtown area.

Self storage street rates represent the average rent for 10’x10’ self storage units located in the downtown areas of the cities analyzed.

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.