• Almost 19 million apartments were permitted in the U.S. between 1980 and 2023.
  • New York City leads the apartment development industry, with 679K apartments permitted since 1980.
  •  State-wise, Texas dominates multifamily activity, claiming four of the top 10 spots for apartment construction.
  • The rising demand for multifamily housing in densely populated cities like New York City and Chicago has correspondingly boosted the self storage industry.

Over the last five decades, the real estate market has continuously evolved, reshaping the way we live, work and play. Nowhere has this transformation been more striking than in the multifamily housing sector, where the constant sound of construction hammers reflects its key role in shaping urbanization trends across the U.S.

As economic conditions fluctuated and demographics shifted, multifamily development surged to meet the growing demand for convenient, affordable and accessible housing. In fact, over the past 44 years, an astounding 19 million multifamily permits have been issued. The 2020s stand out as a peak period, with an annual average of 603,000 permits, making this decade the most active for apartment construction in the last half-century.

Despite recent growth in housing activity, the gap between supply and demand remains significant, especially with single-family construction lagging. Home prices continue to climb, often outpacing wage growth. Combined with the long-standing housing shortage, this has created a highly competitive market characterized by bidding wars and tight rental conditions.

On a brighter note, some cities are taking the lead in multifamily development, recognizing its crucial role in making urban living more accessible. As more people prioritize convenience and affordability in lively, densely populated areas, multifamily housing is becoming an essential part of the solution.

To identify the cities that are going the extra mile in offering more housing options — along with the self storage space that helps maximize apartment living — we closely analyzed multifamily development trends in the nation’s largest cities. Using U.S. Census building permit data and self storage construction data from Yardi Matrix, our study examined real estate activity in the multifamily sector from 1980 to 2023, with a secondary focus on self storage demand and growth patterns in the top 100 cities nationwide.

Texas has emerged as a major player in the multifamily housing sector, with four of the top ten cities analyzed hailing from the Lone Star State — putting it in a league of its own. This not only places the South at the forefront of multifamily development but also gives it a significant edge in addressing the housing needs of many people migrating to the region.

Check out the cities leading the way in multifamily construction and why they’re top picks for growth. With better quality of life, more jobs and a vibrant culture, these spots are attracting people looking for a fresh start. It is definitely worth a look if moving is near the top of your to-do list.

1. New York City, NY

  • Multifamily permits (1980-2023): 679K permits issued
  • Self storage deliveries (1980-2023): 29M square feet

The Big Apple remains firmly placed as the top active apartment market, a testament to the resilience of developers who have managed to soar to the top of the list despite challenges posed by high construction costs and strict regulations.

Despite limited land availability, New York City’s multifamily segment’s surge has not been stifled, continually reshaping the city’s iconic skyline. From 1980 to 2023, permits issued for new apartments totaled an impressive 679K, highlighting the ever-growing demand for housing driven by the city’s expanding population.

New York cranes.

The 2000s marked a key turning point, with New York City experiencing a significant 275% growth in multifamily development compared to the 1990s, resulting in over 22K new apartments per year, on average, during de 2000s. After a slowdown in the 2010s following the Recession, the 2020s saw a resurgence, reaching the highest level of multifamily activity with 25,830 apartments approved. This continued growth underscores the city’s ongoing need to accommodate its expanding population, keeping housing demand consistently high.

Fueled by intense activity in the multifamily housing sector, New York City’s self storage market has blossomed to meet the demands of its ever-increasing population. Beginning in the 1980s, with an annual average of over 193K square feet of self storage space, the city witnessed a dramatic surge in demand as more residents flocked to the Big Apple.

While most decades saw consistent growth, the 2010s were an exception, marking the only period of decline in the city’s self storage inventory, which still reached an annual average of over 830K square feet. This dip can be attributed to a combination of economic factors and shifting real estate priorities, yet it was only a temporary pause in an otherwise booming industry.

The 2020s brought a resurgence, reflecting the ongoing housing crunch and the constant influx of new residents. During this period, New York City registered its highest volume of self storage construction, delivering over 1.2M square feet of new space on average, per year. This nearly sixfold increase compared to the 1980s, highlights that in a city where space is premium, multifamily dwellings can often lack sufficient storage capacity.

2. Los Angeles, CA

  •  Multifamily permits (1980-2023): 364K
  •  Self storage deliveries (1980-2023): 7M square feet

From the 1980s through the 2020s, Los Angeles has amassed more than 364K apartments in the multifamily sector.

The City of Angels, with its unique blend of star power as an entertainment hub and a strong demand for housing, has been a consistent leader in the multifamily housing market. Despite its reputation for favoring single family homes and suburban living, Los Angeles has seen a notable development of high-rise apartments and mixed-use complexes in neighborhoods like Downtown Los Angeles, Koreatown and Hollywood. Koreatown, in particular, has seen surging growth throughout the last decade, with more investors turning their attention to the bustling area. Its alluring appeal as a prime lifestyle destination, especially for young professionals seeking new job opportunities, makes it a city of endless possibilities.

Zoning and environmental regulations, like the California Environmental Quality Act (CEQA), also impact Los Angeles’ construction landscape. Such rules can complicate and slow down development, making the market more competitive and often leading to higher costs for new housing units.

Los Angeles skyscrapers.

Zooming in on construction activity by decade, Los Angeles’ multifamily housing market peaked in the 1980s, with over 13,160 permits issued annually on average, surpassing New York during that period. In the decades that followed, expansion continued at a steady pace, driven by the city’s diverse population and its demand for a variety of housing options to serve different communities and lifestyles.

During the 2020s, the city has added an impressive average of 11,453 new apartments annually, reflecting its enduring appeal and ability to attract and sustain a growing population. The number of permits registered during this decade is nearly on par with the 1980s and could potentially surpass that milestone by the decade’s end, signaling the City of Angels’ ongoing strength in the multifamily housing sector.

As the residential apartment segment surged in Los Angeles due to increasing demand for urban housing and higher population density, the need for supplementary storage solutions also grew. The 1980s market was a period of notable self storage development in the city, with an annual average of 213K square feet of space being established to meet the expanding storage needs. This trend did not stretch into the 1990s, as numbers dropped to nearly 125K square feet of space.
As the 2010s approached, the growth in self storage space began to decelerate. Nevertheless, the 2020s witnessed a resurgence in self storage, with Los Angeles communities seeing a rebound 273K square feet of available space on average, its best decade yet.

3. Houston, TX

  • Multifamily permits (1980-2023): 272K
  • Self storage deliveries (1980-2023): 27M square feet

Regarded as a top relocation destination for West Coast residents, Houston, TX, has secured the third spot in the multifamily housing market. Fueled by its booming energy sector and affordable housing options, Houston is rapidly transforming into a more urbanized environment to meet the needs of its growing population. An influx of new families and professionals has driven significant urban expansion, leading to a sharp rise in demand for multifamily housing to accommodate the city’s evolving demographic.

This urbanization reflects Houston’s shift from a primarily suburban layout to a more diverse, city-centered lifestyle, creating increased demand for housing that offers both affordability and proximity to economic hubs.

Over the decades, from the 1980s to 2023, Houston issued 272K apartment permits. The 1980s saw the addition of an average of 5,357 residential complexes per year, but this growth was followed by a 23% drop in licenses during the 1990s. However, the 2020s marked a significant milestone, with an average of 9,383 permits annually, driven by increased demand exacerbated by the COVID-19 pandemic.

In contrast, the self storage sector experienced its own set of fluctuations. While the 1980s saw the addition of over 550K square feet of new space on average, per year, the 2000s outpaced previous decades with more than 690K square feet of new storage capacity, making it the peak decade for expansion.

4. Dallas, TX

  • Multifamily permits (1980-2023): 237K
  • Self storage deliveries (1980-2023): 10M square feet

Dallas, TX, is a major economic powerhouse notable for its ability to absorb large quantities of new inventory. Its expansive metropolitan area and robust housing demand support it.

Throughout the last four decades, the Big D has amassed over 237K apartment permits, starting strong and setting a benchmark in the 1980s with an average of 8,381 permits – its highest peak recorded. Although this level was not sustained, and the 2020s saw a decline to 5,574 permits, the demand for multifamily housing has remained significant. With an unemployment rate of around 4.4% as of June 2024, residents are bolstered by a prosperous job market, prompting many to relocate from warmer climates such as California. In response, developers are active, maintaining the South’s competitive position in the real estate sector.

As persistent migration is pushing for more residential units, self storage in Dallas is booming.

The 1990s saw the most growth, with over 319,000 square feet added yearly on average. However, the pace has slowed in the 2020s, with only 142,000 square feet of new space so far — about half of what was added in the previous decade. This slower growth could be due to the market nearing saturation, with supply catching up to demand.

With a self storage inventory per capita rate of 5.20 square feet and a rental rate of $110 for a 10×10 unit, Dallas offers relatively affordable storage options compared to Los Angeles, for example, where the same type of unit runs about $264.

5. Austin, TX

  • Multifamily permits (1980-2023): 234K
  • Self storage deliveries (1980-2023): 11M square feet

Following suit with other Texan cities, Austin joins the ranks of the top markets multifamily construction, securing the 5th position in national rankings. Austin’s rise as a tech hub has made it into one of the most active apartment segments in the country, as young professionals flock to the city’s dynamic industry landscape. Major players such as Tesla and Apple contribute significantly to this influx, further intensifying the demand for residential units.

Economically, Austin is strong, with a low unemployment rate of around 3.5%, continuing to attract skilled workers. Between 1980 and 2023, the city issued over 234K building permits for new apartments. Although the 1990s saw a dip in permit numbers, reaching a low of 2,931 per year, on average, Austin swiftly recovered in the following decades. By the 2020s, the city achieved a peak with 14K new permits, representing a 110% increase over the previous decade.

In the realm of self storage, Austin experienced its highest expansion in 2010, adding an average of over 360K square feet of new space yearly. This was followed by a decrease in this decade, with a 28% reduction resulting in 260K square feet of additional capacity.

6. Chicago, IL

  • Multifamily permits (1980-2023): 190K
  • Self storage deliveries (1980-2023): 14M square feet

The birthplace of the modern skyscraper, Windy City, has created a cityscape where high-rise multifamily buildings are a natural fit, particularly in downtown areas like River North. Chicago is one of the densest cities in the United States, especially in its central regions. Subsequently, this drives the demand for multifamily housing, as many people prefer the convenience of urban living close to work and amenities.

The city’s rich history and the noticeable shifts in population trends are evident in the multifamily housing permits issued from 1980 through 2023, totaling 190K apartments. The 2000s stood out as a period of exceptional growth, with an average of 7,358 new apartment units approved, representing a 236% surge compared to the previous decade. However, this momentum slowed in the 2010s, with only 4,924 permits granted annually, underscoring the challenges the city’s housing market faced. So far, the 2020s have seen a prudent recovery, with 4,713 new apartments added, pointing to a gradual upward trend in multifamily development.

In tandem with the multifamily sector, Chicago’s self storage market has evolved to meet the needs of a city where space is increasingly sparse. Mirroring these housing dynamics, the city added 14M square feet of rentable self storage space over the same period. The 2000s marked a peak in this segment, with an annual average of 488K square feet of space constructed. This decade has already contributed 186K square feet per year, nearly half of the previous peak, displaying the persistent demand for storage solutions in a densely populated urban environment.

7. Phoenix, AZ

  • Multifamily permits (1980-2023): 188K
  • Self storage deliveries (1980-2023): 11M square feet

Phoenix, AZ, has rapidly become a key player in the real estate market, ranking as the seventh most active city for apartment development. Fueled by growth in the industrial and healthcare sectors, along with its appealing climate and affordable living costs, Phoenix is experiencing a housing boom. The city’s average rent of $1,514 is 12% lower than the national average, making it particularly appealing to budget-conscious renters, especially those relocating from California to escape the high cost of living.

Phoenix construction site.

Overall, The Valley of the Sun’s apartment market issued 188K permits from the 1980s to the 2020s. Population growth has outpaced the national average, with an 11.27% increase from 2010 to 2020 compared to the 7.17% nationally. Apartment development expanded sharply, with the 2020s seeing 8,609 new permits per year– a 197% increase from the prior decade.

Echoed in Phoenix’s self storage market, which has expanded to meet the needs of an advancing populace, the Valley of the Sun has added over 11M square feet of self storage space. The 2020s have also been particularly noteworthy for this segment, with a peak of 599K square feet added yearly on average, consisting of a 154% increase from the 2010s, which saw an average of 236K square feet of inventory.

Currently, the self storage per capita in Phoenix stands at 5.5 square feet, with a typical 10×10 unit renting for $116. In comparison, Houston, which also faces housing pressures, has a higher self storage per capita rate of 6.80 square feet and a lower rent of $94 for the same unit size.

8. Seattle, WA

  • Multifamily permits (1980-2023): 177K
  • Self storage deliveries (1980-2023): 4M square feet

Seattle, the Emerald City, has long been a beacon of opportunity and charm, contributing to its notable position as the nation’s 8th most active city for apartment construction. With its thriving tech sector and exceptional quality of life, Seattle attracts residents nationwide and beyond. The city’s job market, buoyed by major players like Microsoft and Amazon, is a major draw, with technology and aerospace jobs forming the backbone of its economy. Combined with the city’s stunning natural surroundings, this economic strength has solidified Seattle’s reputation as a prime location for new residential projects.

From 1980 to 2023, Seattle granted permits for 177K new apartments. The pace of construction has varied significantly over the decades. In the 1990s, a relatively modest 2,017 permits were granted on average, per year. In stark contrast, the 2020s have been remarkably prolific, with 7,648 new permits granted.

Seattle construction site.

This surge in apartment construction aligns with the city’s economic vitality and high median household income, as according to the U.S. Census Bureau, Seattle’s median household income was $115K in 2022, well above the national average of $74K. Despite the high cost of living, a strong demand for new residential units is on the rise. As of early 2024, the average rent for an apartment in Seattle was about $2,275, nearly 30% higher than the national average of $1,739.

Parallel to the expansion in apartment construction, Seattle’s self storage market has also transformed. Since 1980, the city has seen significant increases in self storage space, with over 4M square feet. The 2010s, however, marked a peak with an annual average of 112K square feet of inventory added, a number that later declined due to various factors, including economic shifts. Despite the pandemic’s impact, the 2020s saw a recovery and registered 79K square feet of new self storage space, reflecting a resurgence in demand as residents face increasing housing constraints.

9. San Diego, CA

  • Multifamily permits (1980-2023): 173K
  • Self storage deliveries (1980-2023): 7M square feet

San Diego, with its enviable West Coast allure, claims the 9th spot in our ranking for apartment market activity. Known for its nearly perfect weather—mild temperatures year-round and abundant sunshine—San Diego naturally attracts a steady stream of new residents, including workers motivated by the city’s innovation-driven economy and outdoor lifestyle. From its stunning beaches to iconic attractions like the San Diego Zoo and a bustling waterfront, the city’s appeal is undeniable.

However, while admirable, San Diego’s commitment to sustainability presents a double-edged sword. The city’s eco-friendly practices, aimed at preserving its coastal and environmental integrity, often complicate and slow down the development process, particularly for new housing projects. Balancing ecological conservation with the pressing need for more housing creates a complex and usually fraught real estate development.

Even with these challenges ahead, that did not stop San Diego from experiencing notable growth in apartment construction. Over the past few decades, the city has issued 173K permits for new apartments. The 1980s stand out as a solid period, with an annual average of 6,782 permits granted. While the pace has slowed in recent years, there are signs of renewed momentum, with an average of 4,413 permits per year already issued in the current decade, indicating potential for continued growth.

San Diego’s struggle with a housing shortage and skyrocketing rent prices further emphasize the importance of these developments. As the multifamily demand surges, small living spaces come at premium prices. In turn, this high demand for residential space has driven a crucial need for self storage solutions, particularly as apartment sizes shrink.

During the 2000s, San Diego’s self storage market experienced its highest growth, seeing the addition of 242K square feet of storage space, on average, per year. However, this pace of expansion has yet to be maintained, with a gradual decline in subsequent decades, leading to the current average of 169K square feet added in the 2020s. Even with this reduction, demand remains robust.

A 10×10 self storage unit, averaging $183 in rent, highlights this strong demand, making San Diego’s rates among the country’s major urban hotspots, right behind Seattle’s at $189.

10. San Antonio, TX

  • Multifamily permits (1980-2023): 145K
  • Self storage deliveries (1980-2023): 17M square feet

San Antonio, TX, stands out as a significant force in the housing landscape, rounding out our top ten list for active markets. Known as “Military City USA,” it hosts one of the largest military bases in the country. The substantial army presence ensures stable employment for thousands of residents while driving a consistent need for housing, especially rental units tailored for military personnel and their families. Adding to the city’s attractiveness, its strategic location in South Texas makes it a prominent trade hub due to its proximity to Mexico. As a result, San Antonio has established itself as a key logistics and manufacturing center, appealing to both businesses and workers.

Compared to cities like Austin or Dallas, San Antonio offers a more affordable cost of living, 9% lower than the national average, in fact, which attracts a diverse mix of young professionals, retirees and families.

Examining the data on housing development, the city has seen over 145K issued permits from the 1980s through the 2020s. The 1990s marked a period of slower activity, with only 1,652 units permitted per year, reflecting a decade of modest development. Resurgence soon came in the 2000s, but the health crisis of the late 2010s impacted housing trends, as during this period, many individuals downsized or relocated to smaller homes, which in turn slowed the pace of new construction.

Nevertheless, the city rebounded strongly in the 2020s. Construction surged by 125% compared to the previous decade, with an average of 5,974 units being added annually. This comeback illustrates San Antonio’s resilience and growing appeal in the multifamily market.

Self storage construction in San Antonio follows a similar trend. In the 2020s, the market peaked with a yearly average of 558K square feet of storage space.

The last five decades have seen shifting fluctuations in the multifamily sector in the United States. Notably, New York, Los Angeles and Houston have led the pack with impressive numbers. Changing lifestyle preferences, population influxes and economic development have all contributed to the ever-changing skyline as the cities gradually morphed into better-suited options.

Methodology:

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

We analyzed multifamily and self storage construction data for the 100 largest U.S. cities with populations over 200,000, eliminating those without data to ensure a comprehensive final ranking.

The period for which we analyzed data was January 1980 to December 2023. Construction activity was quantified and evaluated based on building permits for the multifamily sector and square feet for the self storage sector.

We analyzed multifamily unit count data from U.S. Census building permit records, and we deemed it a relevant indicator of the housing market activity that allowed us to visualize the market’s evolution in relation to household formation. At a national level, 72% of the multifamily permits translate into completions.

We calculated the total volume of construction activity for the following decades: 1980 to 1989, 1990 to 1999, 2000 to 2009, 2010 to 2019, 2020 to 2023, both nationally and for the cities analyzed. We also computed the average annual construction activity for every decade and both sectors.

We used self storage construction data and street rates from Yardi Matrix, StorageCafe’s sister division and 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.
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.

Author

Anca is a real estate writer and editor for StorageCafe, with a degree in Communication and Public Relations. With over six years of experience in marketing, she now focuses on real estate trends. Outside the office, she's either leveling up in the latest game or enjoying her favorite novels. You can contact Anca via email.

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