- Over the last 50 years, U.S. cities have seen significant real estate development across all sectors. The self storage and office markets expanded their inventories the most during this period, by 91% and 55% respectively.
- While most sectors of real estate have experienced explosive growth, retail has been on a more moderate and fluctuating growth trajectory, influenced by changing consumer behaviors, the rise of e-commerce and ongoing economic challenges.
- Zooming in on the evolution of each sector by decade, single family construction peaked in the 2000s, with an average of 1.19 million building permits per year.
- For multifamily construction, the current half of the decade is the most prolific, with approximately 603,000 building permits issued annually.
- Overall, southern and southwestern cities dominate the top 20 of the country’s best cities for real estate development, occupying 15 positions in the national ranking.
- Houston, Texas, has been the best-performing city for real estate development over the last 44 years, followed by Phoenix, Arizona, and San Antonio, Texas.
If there’s one constant across the U.S. over the past 50 years, it’s the cranes dominating our cities’ skylines. The real estate construction engine has been running at full speed, transforming our urban landscapes to meet modern lifestyle and economic needs.
But growth is not equal, and some cities have surged ahead in the construction Olympics. To pinpoint where the most development is happening and which sectors are advancing most rapidly in the biggest U.S. cities, we turned to data from the U.S. Census as well as our sister research divisions, Commercial Edge and Yardi Matrix. We analyzed real estate activity across the U.S. from 1980 to 2023, covering six major sectors: single family, multifamily, industrial, office, retail and self storage. Then, we zoomed in on the country’s top 100 largest cities to rank the most active real estate markets in the U.S. over the near half-century based on development volumes.
The construction scene in the US has always been bustling, but what we’re building today looks quite different from what was breaking ground when Millennials were born. Back then, retail and office construction dominated, with shopping malls serving as the anchors of social life. Today, there’s a noticeable shift towards urbanization, marked by significant growth in multifamily housing and a surge in self-storage and industrial spaces.
Residential real estate pushes forward as multifamily steps up to bridge the gap left by lagging single family construction
Over 41 million single family units were permitted in the U.S. between 1980 and 2023, along with almost 19 million apartments. While these might be impressive numbers, the U.S. population grew by more than 100 million people during the same period, and home construction hasn’t always kept pace with housing needs.
Currently, the total housing deficit in the U.S. is estimated to be around 3.2 million units. This shortage has led to expensive homes and intense bidding wars, with affordability further impacted by high mortgage rates.
The most active decade for single family construction in the last 50 years was 2000–2009, when no fewer than 11.9 million building permits were issued. However, the pace almost halved in the decade starting in 2010, right after the Great Recession technically ended. The aftermath of the 2008 housing market collapse extended into the following decade through credit freezes and risk-averse behavior from both the real estate industry and the population, significantly suppressing construction activity during the 2010s.
Between 2010 and 2019, an average of approximately 663,000 single family homes were permitted annually, totaling 6.6 million for the decade. This period of low construction activity continues to impact the housing market today, leading to high home prices and limited availability.
As a silver lining, the 2020s are seeing a comeback in single family home construction. The annual average for building permits is now close to 1 million, showing a renewed interest in the sector.
Among the locations that are strongly pushing forward, southern hubs carry the torch in single family home construction, with nearly all of the top 20 performers located in the South. Phoenix, AZ, leads the way with an impressive 215,000 single family homes permitted between 1980 and 2023, followed by Houston, TX, and Jacksonville, FL.
Meanwhile, the multifamily sector is stepping in to fill the gaps left by the slower single family construction, aiming to meet the housing needs of a growing population. The current decade is the best-performing period for multifamily construction among the five decades analyzed. Since 2020, the average annual number of apartments permitted has been around 603,000, which is a 56% increase compared to the 2010s. The only decade that comes close in multifamily construction is the 1980s, while the 1990s saw the lowest number of permits.
New York City leads in the sheer volume of multifamily building permits issued between 1980 and 2023, with almost 680,000. Los Angeles, CA, ranks second, followed by Houston, TX, which excels in multiple categories.
Currently, self storage is seeing double the annual completions compared to the 1980s
As the youngest sector of real estate, it’s no surprise that the self storage industry delivered a whopping 91% of its total inventory, or nearly 2 billion square feet of space, post-1980. The 2020s are shaping up to become the best decade for self storage construction. Current deliveries amount to over 64 million square feet of new space added annually, surpassing the annual peak of 55 million square feet recorded in the 2000s.
The current boom in self storage construction comes down to changes in how we live, work and move around, as well as surging urbanization and the increasing business and commercial use of the service. People are accumulating more possessions and often need extra space to store them, especially in urban areas where living spaces are smaller. The modern workforce is more mobile as well, creating demand for flexible storage solutions that can accommodate frequent relocations. Additionally, the self storage industry has matured and become mainstream, often used as an extension of the home. Storage square footage is much cheaper than buying or renting larger living spaces, making it a popular choice for keeping homes less cluttered and more organized without breaking the bank.
The 2000s saw the highest overall volume of self storage construction nationwide, of almost 557M square feet in total, with the 1990s also delivering a respectable 430M square feet of new space. Major urban centers such as New York City, Houston, TX, and San Antonio, TX, lead the nation in new self storage deliveries, reflecting the high demand for these services in densely populated areas.
Is manufacturing back? Industrial construction sees massive boost
About half of the country’s industrial inventory was built after 1980 — and the current decade is seeing a veritable frenzy of industrial construction, with an annual average of almost 516M square feet of new space. This is more than double the annual average on industrial construction registered in the 2010s, and about 50% higher compared to each of the other three previous decades. From the rapid expansion of e-commerce to government incentives, there are multiple factors that are leading to this industrial revival in the United States.
There’s increased demand for logistics and distribution centers, for once — companies like Amazon, Walmart and other online retailers require massive warehouses and fulfillment centers to manage inventory and ensure timely delivery of goods, so, partially, the high volume of industrial construction relates to these trends.
More than that, manufacturing, or at least parts of it, is going domestic. Disruptions caused by the COVID-19 pandemic exposed vulnerabilities in global supply chains, prompting many companies to rethink and reconfigure their activity. This has led to a trend of reshoring manufacturing and logistics operations back to the U.S. to enhance supply chain resilience.
Similarly, federal and state authorities have introduced policies and incentives to stimulate industrial growth. This includes tax breaks, grants and subsidies for industries such as semiconductor manufacturing, renewable energy and electric vehicles — like the CHIPS and Science Act of 2022, for instance, which aims to boost domestic semiconductor production.
Looking at the overall inventory of industrial space delivered nationwide by decade, the 1980s, 1990s and 2000s all surpass the 3 billion-square-feet benchmark. Although the current decade is not yet halfway through, over 2 billion square feet of new industrial space already went online nationally. As for cities excelling in industrial construction, Houston, TX, tops the chart here as well, followed by Fort Worth, TX, and Phoenix, AZ.
Office space construction truly shined in the 1980s, with over 268 million square feet of new office space delivered annually. The following two decades, the 1990s and the 2000s, saw the sector nearly halve its annual deliveries. The 2010s, marked by the aftershocks of the Great Recession, represent the lowest point in office construction, with 84.6 million square feet delivered annually. Interestingly, during the 2020s, an average of 86 million square feet of new space were delivered across the U.S., a reasonable volume considering the dramatic impact of the pandemic on the office market. The office space sector has once again shown resilience, reinventing itself and focusing on flexible and collaborative work environments to adapt to changing workforce needs.
Overall, New York City tops the list of cities with significant office construction between 1980 and 2023, having added a more than impressive 255M square feet of office space.
Since the golden era in the 2000s, when retail construction peaked at 246 million square feet of space delivered annually, the pace has slowed dramatically. In the current half of the decade, development has averaged just under 57 million square feet annually. The surge in online shopping, which has significantly reduced the demand for physical retail spaces, and market consolidation that has shifted focus to more exclusive areas, are key factors behind this decline in retail construction.
More than four decades of growth: Southern and southwestern cities dominate real estate boom
South by Southwest is not just an amazing arts and technology festival taking place annually in Austin, Texas, but also a very apt way of describing the country’s regions that have experienced fulminant real estate growth since the 1980s. An impressive 15 of the top 20 cities most active for real estate development between 1980 and 2023 are southern or southwestern cities. Furthermore, Texas and Florida are playing in a league of their own, with five and four cities, respectively, among the top 20.
These regions have attracted businesses and residents for decades now, with their lower cost of living, favorable tax environments and robust job markets in sought-after industries like technology, energy and health care. Population growth has fueled housing demand as well as economic growth, which eventually led to a boom in residential and commercial real estate projects. Additionally, significant infrastructure investments and urban planning initiatives have facilitated the development of modern amenities and transportation networks, further enhancing their appeal.
Texan cities excel on all real estate fronts, from housing to commercial sectors
Texas has undergone dramatic transformations since the 1980s, turning cities like Houston, San Antonio, Austin, Dallas and Fort Worth into economic powerhouses. The technology boom, particularly in Austin, draws new talent to the city, fostering robust real estate market growth. Similarly, Houston’s energy sector, Dallas’s financial hub and San Antonio’s military and health care industries have driven extensive commercial and residential developments.
Houston ranks first nationally for real estate development overall between 1980 and 2023, scoring well across the board. The Space City saw about 166K single family and 272K multifamily permits in total, with the current decade performing best for housing construction. The average number of single family permits issued annually since 2020 hovers around 6,620, or 49% more compared to the 2010s. The same trend holds in the multifamily sector as well, where we are currently seeing almost 9,400 permits per year on average, representing a 20% increase compared to the previous decade. The sustained activity on the housing front goes hand in hand with Houston’s expanding population and its status as a hot moving destination for Americans.
A city well supplied in terms of self storage space, Houston added a big portion of its inventory in the 1990s and the 2000s, but the level of new construction remained relatively robust throughout all five decades analyzed, for a total of 26.6M square feet of space build between 1980 and 2023.
The city’s industrial inventory is also on an upward trend — a whopping 292M square feet of space have been delivered in Houston since 1980, and the current decade is the best, by far, as annual average. Retail and office construction also saw massive additions of 117M square feet and 170 respectively, but new construction in both sectors has been on a downward trend since the 2010s.
Landing in the third position nationally, San Antonio excels when it comes to new housing, registering over 158K single family building permits and 145K multifamily permits over the period analyzed. The city’s rich cultural heritage and vibrant lifestyle, combined with its dynamic economy and relatively low cost of living compared to other major cities, have made it an attractive destination for families and individuals seeking quality of life. The active housing construction sector stimulated self storage development, and San Antonio has managed to deliver 17M square feet of storage space since 1980, the third-largest amount among the country’s top 100 most populous cities.
Austin’s emergence as a major tech hub, attracting a steady influx of companies, startups and a young, highly skilled workforce, is behind its excellent performance in the multifamily sector. The city’s dynamic population, creating a continuous demand for rental properties, has led to over 234K apartments being permitted since 1980. The current decade registers, on average, almost 13,800 permits annually, more than double compared to the 2010s and almost triple compared to the 1980s. On top of that, the city saw almost 116K building permits for single family homes. True to its business-friendly profile, Austin also delivered well over 90M square feet of office space during the period analyzed.
If Dallas makes strides in apartment construction, Fort Worth does the same with single family homes. Over 237K apartments have been permitted in Dallas since 1980, the fourth-highest number nationally — and, unlike in many other places, apartment construction kept pace even in the 2010s. Dallas has also significantly increased its industrial space inventory, with an impressive 103M square feet of space built over the last 44 years.
Fort Worth, on the other hand, has focused more on single family homes, with over 161K units permitted since 1980 — a performance that helps it rank fourth nationally, an impressive feat for a city its size. Currently, about 7,144 single family homes are permitted annually, almost double compared to the 2010s.
Desert power: Phoenix, AZ, and Las Vegas, NV, transformed their real estate landscapes
In the Southwest, Phoenix, Arizona, and Las Vegas, Nevada, have transformed their desert landscapes into bustling urban centers since 1980. Phoenix has seen a surge in population spanning over decades due to its booming tech and manufacturing sectors, coupled with a favorable business climate. The city’s comparatively affordable living costs and warm winter climate have also made it a popular destination for both retirees and young families, prompting numerous residential and commercial real estate projects.
Thus, the Valley of the Sun city ranks second nationally for real estate development overall, while also overperforming in single family home construction. Phoenix has seen a whopping 215K single family homes permitted since 1980, the highest number nationally, once again confirming the city’s appeal to newcomers.
And that’s not all, as Phoenix also registered almost 188K multifamily permits. Among the commercial real estate branches, industrial construction does best — the city has managed to build no less than 127M square feet of industrial space since 1980.
The “Entertainment Capital of the World” has leveraged its renowned tourism and hospitality industries to drive economic growth and real estate development. The constant influx of tourists has necessitated the expansion of commercial real estate, while also fostering residential growth to accommodate a growing workforce. The city also benefits from a strategic location, with easy access to major highways and airports, which has further enhanced its attractiveness for businesses and residents alike.
Thus, Las Vegas, ranking sixth for real estate development overall, has seen the addition of almost 69M square feet of retail space since 1980, the third-largest amount nationally. Single family home construction is also thriving — almost 142K single family units have been permitted since 1980. Mirroring home construction trends, the self storage sector in the city keeps expanding. Almost 590K square feet of new storage space has gone online annually since 2020, three and a half times more compared to the 2010s’ yearly average.
Apartments, offices and self storage are NYC’s most active real estate sectors
The relentless demand for apartments in New York City, which underscores the city’s status as a global hub of cultural and economic opportunities, is difficult to quench. Even with over 679K new apartments permitted since 1980, placing the city first nationally for this sector, NYC remains one of the country’s most competitive rental markets. Fortunately, the current decade is picking up pace when it comes to multifamily construction, with an average of almost 26,000 apartments permitted annually, more than in any of the previous four decades analyzed.
The proliferation of self storage construction highlights the city’s living space constraints, with residents and even businesses often requiring additional space to store their belongings. Almost 29M square feet of self storage space have been delivered in the city since 1980. Following apartment construction trends, self storage delivery is getting hot in NYC this decade, with an annual average of over 1.2M square feet of new space, five times more than in the 1980s. However, despite the intense activity in the sector, NYC is one of the most undersupplied and most expensive self storage markets nationally, with the average storage unit in New York City renting for $250 per month.
In parallel, the office construction sector remains robust, buoyed by NYC’s role as a major financial and corporate center, where businesses covet prestigious addresses in Manhattan and beyond. NYC ranks first nationally for office space delivered since 1980: an impressive 255M square feet in total.
Sunshine State boom: Four cities in Florida among the country’s most active for real estate development
The state’s favorable taxation laws, its coastal location and warm climate have made it a prime destination for new residents, retirees and tourists, fueling a striking increase in its overall economy since the 1980s. Residential and commercial real estate naturally followed suit, with cities like Jacksonville, Orlando, Tampa and Miami having seen rapid growth in high-rise apartment buildings, suburban communities and commercial real estate.
Jacksonville, with its strong health care, military and logistics sectors, and the trademark Floridian tourism industry, managed to rank eighth nationally and first in the state for the development of its real estate inventory since 1980.
The residential sector, particularly single family homes, is reflecting the increased interest Jacksonville has experienced from newcomers for a hot minute now — the city has issued almost 164K single family building permits since 1980, landing on a more than honorable third position nationally. To compare, Houston, Texas, a far larger city that also has a strong standing in single family home construction, has managed to permit only about 3,000 more single family units, while the likes of San Diego and Los Angeles have actually permitted less than half of Jacksonville’s numbers. At the same time, Jacksonville doesn’t shy away from multifamily construction: over 103K apartments have been permitted here since 1980, with the years after 2020 also being particularly active. The city’s best-performing commercial real estate sectors include industrial, self storage and retail — while for office construction, the city lands on the twenty-ninth position nationally.
Orlando, renowned for its theme parks and tourism industry, has also experienced remarkable changes in its residential and commercial real estate inventories since 1980. Orlando attracts millions of visitors annually to its theme parks, resorts and attractions, an influx that drives demand for retail spaces to serve both tourists and the growing local population — and the city delivered almost 50M square feet of retail space over the period analyzed, the sixth-largest number nationally.
But Orlando has been acting as a hub for technology and innovation as well, particularly in areas such as aerospace and biotech, which are boosting the demand for industrial real estate. As a result, over 86M square feet of industrial space have been delivered here since 1980.
In terms of residential real estate, Orlando performed better for multifamily units, with over 76K permitted, compared to 29K permits for single family homes. Growing residential areas often lead to higher demand for self storage units as people require extra space for their belongings, so the sector delivered almost 10M square feet of storage space in Orlando.
Tampa overlaps Miami, ranking sixteenth nationally for real estate development overall between 1980 and 2023. Its strongest suits include retail, self storage and office construction — but the city also permitted over 40K single family units and close to 66K multifamily units over the past 44 years.
Miami’s international appeal as a cultural and financial hub has led to a surge in apartment construction, attracting foreign investors and buyers with deep pockets. Thus, the city has permitted almost 112K multifamily units, with single home construction on the back burner: only around 4,000 have been permitted in Miami since 1980.
The influx of new residents, including a significant number of affluent retirees and high-flying professionals, has created a market for luxury goods, upscale dining and unique shopping experiences, so Miami has managed to deliver a remarkable 50M square feet of retail space since 1980, ranking fifth nationally for this sector.
West Coast giants San Diego and Los Angeles going head-to-head for real estate development
Despite recent discussions about California losing population, a long-term perspective reveals, in fact, significant population growth, from around 23.8 million in 1980 to nearly 40 million today. This population surge has created substantial pressure for housing to accommodate the influx, driving up housing prices. Ironically, the same high housing costs are now contributing to the outflow of residents. So, how did California’s major urban hot spots do in term of real estate development over the past 44 years, and what could have they done better to lift some of the pressure on the state’s red hot housing market?
San Diego and Los Angeles respectively rank tenth and eleventh nationally for real estate development since 1980, and there are many parallels to be drawn between them, particularly in terms of housing construction. San Diego and Los Angeles are grappling with severe housing crises, marked by skyrocketing prices and limited availability. In both cities, demand for housing far outstrips supply, driven by robust economic activity and an influx of high-income residents. Despite the booming economies, housing construction has lagged behind, constrained by regulatory hurdles, high construction costs and limited land availability. In San Diego, the emphasis on preserving natural landscapes has further restricted development, while in Los Angeles, zoning laws and community resistance have slowed the pace of new housing projects. The result is a chronic shortage of affordable housing — and, although the multifamily sector fares pretty well in both locations, it’s still not enough.
San Diego has permitted almost 173K apartments since 1980, and over 76K single family homes. Single family construction is on a steep downward trend, with the average annual number of permits declining with each decade. If in the 1980s over 3,400 single family homes were permitted annually, nowadays that number has dropped to around 500. Apartment construction, on the other hand, is seeing a far better trajectory: After a drop in the number of permits in the 1990s, the activity picked up pace with each decade. The city performs well for office construction, with over 77M square feet of space delivered since 1980, and self storage, where 7.3M square feet of space were added to the inventory over the past 44 years.
Los Angeles is seeing the same disparity between single family and apartment construction. The city ranks second nationally for multifamily permits issued since 1980: almost 365K, with the current decade seeing an average of 11,500 permits annually. As for single family home construction, LA saw almost 84K building permits over the past five decades — to compare, Indianapolis, IN, registered about 10K more.
The city’s best commercial real estate sectors are office construction, with approximately 69M square feet of space since 1980, and self storage, a sector that delivered almost 7.1M square feet of space. Even so, LA remains one of the country’s most undersupplied and expensive self storage markets.
Real estate development in the Midwest anchored by its metropolises Indianapolis, Columbus and Chicago
The past almost five decades have been eventful in the Midwest, to say the least. The decline of manufacturing and the subsequent economic restructuring led to urban decay in many midwestern cities, prompting efforts to revitalize downtown areas and repurpose abandoned industrial sites. The rise of the service sector, particularly health care, education and technology, has spurred new commercial and residential developments. Additionally, population shifts, including suburbanization and the migration from rural areas to urban centers, have shaped housing trends, leading to both suburban sprawl and urban renewal projects.
Indianapolis, IN, is the Midwest’s best-performing city for real estate development over the past 44 years, ranking twelfth nationally. The city has seen almost 84K single family homes and 65K apartments permitted throughout the entire period, with a notable increase in both sectors in the current decade. Known as the “Crossroads of America,” Indianapolis’s central location has made it a key distribution and transportation hub, driving demand for industrial real estate. As a result, the city has added almost 88M square feet of industrial space since 1980, the sixth most nationally.
Columbus, OH, has emerged as a veritable regional growth hub, fueled by a diverse economy that includes education, health care, technology and finance. The presence of major educational institutions like Ohio State University stimulated residential and commercial developments to accommodate a growing population of students, professionals and families. Thus, Columbus managed to permit almost 70K single family homes and a far more impressive 129K apartments over the past 44 years. Apartment construction is, in fact, having a moment right now in Columbus, with multifamily units seeing a 65% increase in the average annual number of permits compared to the 2010s, to 4,724.
The city has done a good job in terms of retail space construction, with over 33M square feet of space added since 1980, while the industrial sector has seen the addition of almost 54M square feet of new space.
Chicago, IL, ranking nineteenth nationally in terms of real estate development, has seen extensive expansion driven by its roles in finance, manufacturing, technology and transportation. The city’s iconic skyline has continually evolved, with new high-rise office buildings, luxury apartments and revitalized historic neighborhoods.
Single family construction is lagging in Chicago, which is to be expected in this busy urban hot spot with little land availability — only 27K single family units have been permitted here since 1980. Multifamily construction, on the other hand, is trying to ensure suitable access to housing to Windy City’s residents: Almost 190K units were permitted in the city, helping it rank sixth nationally for this indicator. However, the average annual number of multifamily permits has been on a descending trend since the 2000s.
Chicago is making serious strides in office construction as well, having delivered almost 102M square feet of space since 1980, the fifth most nationally. Self storage construction has followed suit, with the sector registering over 14M square feet of space over the period analyzed. Retail and industrial construction, on the other hand, are falling behind in Chicago, with the city adding modest amounts of new space in these two sectors.
Southern hubs Atlanta, GA, and Oklahoma City, OK, outperforming much bigger cities
Atlanta has evolved from your average city to a major economic powerhouse over the past few decades, building a diverse local economy that excels in sectors such as finance, technology, media and transportation. The city’s remarkable economic growth naturally has attracted plenty of newcomers, with its population tripling between 1980 and 2023.
The city’s real estate development has kept pace, with office buildings and new apartment complexes transforming Atlanta’s downtown and its other neighborhoods. The city consistently built far more apartments than single family homes over the period analyzed, responding to demand for affordable housing located in areas with easy access to lifestyle amenities. Thus, over 139K apartments were permitted in Atlanta over the past 44 years, compared to just 29K single family homes.
Another highlight of Atlanta’s real estate journey spanning over five decades includes office construction: Over 108M square feet of office space were delivered here, placing the city in the third position nationally for the sector.
Oklahoma City’s economic advancement was propelled by its strong energy sector, particularly oil and natural gas, as well as its burgeoning health care and aerospace industries. The city’s central location in the South has made it a key logistics and transportation hub, contributing to the development industrial real estate — almost 65M square feet of industrial space have been built in the city since 1980, more than in far bigger cities such as San Diego, CA, and even NYC. Revitalization efforts in downtown Oklahoma City, including the creation of entertainment districts and urban housing projects, have attracted new residents, fostering a vibrant urban core. Oklahoma City has permitted no less than 110K single family units and 34K multifamily units over the past five decades.
Mile-high real estate development in Denver, Colorado
Denver’s growing economy and its unique geographic location in the heart of the Mountain West are the two main factors determining its real estate development trajectory over the past 44 years. Denver’s diverse economy, fueled by industries such as technology, aerospace, energy and health care, has attracted a steady influx of businesses and residents, stimulating both commercial and residential real estate development. Moreover, the city’s strategic position near the Rocky Mountains has also made it a hub for outdoor recreation and tourism, further boosting demand for real estate.
Less surprisingly under these circumstances, Denver lands seventeenth overall for real estate development among the country’s top 100 largest cities, with its best-performing sectors being multifamily and office construction. The Mile High City has permitted 111K multifamily units since 1980, some of which are located in the revitalized downtown area, providing easy access to office space. In fact, almost 55M square feet of office space were delivered in Denver during the same period.
Real estate development in the United States since 1980 has been shaped by a multitude of factors, including the shift from manufacturing to service- and tech-based economies, significant population growth, urban expansion, suburban sprawl and the rise of mixed-use developments. The country’s largest cities have each experienced unique trajectories, influenced by their local economic conditions, population trends and geographic constraints. Across the board, however, issues such as housing affordability, sustainable development and infrastructure modernization remain critical challenges — and the lessons learned from the past can guide us toward more resilient real estate development strategies.
You can see below data regarding real estate construction over the past 44 years in 108 major US cities:
44 Years of Real Estate Growth in the Largest US Cities: Inventory Expansions from 1980 to 2023
| Rank | City | Single Family Permits | Multifamily Permits | Self Storage (sq.ft.) | Industrial (sq.ft.) | Retail (sq.ft.) | Office (sq.ft.) |
|---|---|---|---|---|---|---|---|
| 1 | Houston, TX | 166,268 | 272,398 | 26,630,804 | 291,766,010 | 117,148,447 | 170,149,252 |
| 2 | Phoenix, AZ | 215,281 | 187,518 | 11,031,210 | 127,189,159 | 48,145,381 | 71,343,716 |
| 3 | San Antonio, TX | 158,406 | 145,460 | 17,004,816 | 76,610,268 | 78,618,495 | 55,188,761 |
| 4 | Austin, TX | 115,821 | 234,355 | 10,814,593 | 59,652,652 | 43,423,069 | 90,116,592 |
| 5 | Dallas, TX | 82,295 | 237,157 | 10,389,778 | 102,844,419 | 38,857,215 | 88,532,892 |
| 6 | Las Vegas, NV | 141,671 | 71,270 | 15,025,753 | 87,814,905 | 69,239,999 | 47,955,150 |
| 7 | New York City, NY | 43,258 | 679,361 | 29,330,689 | 44,621,397 | 67,472,463 | 255,065,951 |
| 8 | Jacksonville, FL | 163,852 | 103,206 | 10,157,069 | 84,960,501 | 40,501,186 | 37,449,046 |
| 9 | Fort Worth, TX | 161,446 | 101,824 | 9,184,814 | 138,460,968 | 31,823,943 | 29,814,836 |
| 10 | San Diego, CA | 76,358 | 172,846 | 7,355,252 | 56,028,667 | 24,035,966 | 77,139,293 |
| 11 | Los Angeles, CA | 73,828 | 364,612 | 7,077,478 | 35,483,167 | 29,367,348 | 69,189,294 |
| 12 | Indianapolis, IN | 83,924 | 64,661 | 8,108,833 | 87,725,696 | 32,959,344 | 34,967,904 |
| 13 | Columbus, OH | 69,792 | 129,217 | 5,520,376 | 53,673,487 | 33,230,121 | 42,762,260 |
| 14 | Atlanta, GA | 28,861 | 139,379 | 6,595,217 | 70,723,278 | 31,590,443 | 108,355,537 |
| 15 | Orlando, FL | 29,005 | 76,218 | 9,784,809 | 86,478,246 | 49,709,870 | 41,227,374 |
| 16 | Tampa, FL | 40,338 | 65,959 | 6,765,152 | 48,463,212 | 33,778,165 | 46,741,467 |
| 17 | Denver, CO | 52,415 | 111,137 | 5,086,218 | 46,830,424 | 27,632,865 | 54,940,280 |
| 18 | Oklahoma City, OK | 110,285 | 34,051 | 6,206,873 | 64,815,753 | 29,946,049 | 27,874,003 |
| 19 | Chicago, IL | 27,282 | 189,512 | 14,182,840 | 24,166,969 | 15,876,642 | 101,948,241 |
| 20 | Miami, FL | 3,926 | 111,940 | 10,403,705 | 59,159,544 | 50,441,469 | 41,595,499 |
| 21 | Sacramento, CA | 56,432 | 38,238 | 5,868,811 | 49,329,643 | 20,118,376 | 40,007,143 |
| 21 | Nashville, TN | 101,258 | 128,513 | 3,855,347 | 27,692,178 | 18,800,280 | 39,076,277 |
| 23 | Raleigh, NC | 89,050 | 87,227 | 5,128,136 | 16,679,147 | 24,088,329 | 32,880,630 |
| 24 | Tucson, AZ | 53,520 | 49,096 | 6,403,373 | 28,456,167 | 32,383,003 | 20,837,729 |
| 25 | Mesa, AZ | 90,139 | 53,135 | 4,886,151 | 32,040,995 | 25,300,229 | 14,003,376 |
| 26 | Omaha, NE | 67,900 | 39,517 | 4,914,843 | 31,403,995 | 22,754,147 | 26,443,540 |
| 27 | El Paso, TX | 101,755 | 36,605 | 4,444,505 | 49,940,395 | 29,665,398 | 8,529,818 |
| 27 | Albuquerque, NM | 86,818 | 35,237 | 4,572,477 | 26,912,570 | 25,194,893 | 19,821,486 |
| 29 | San Jose, CA | 40,113 | 84,845 | 4,442,183 | 19,547,128 | 15,492,672 | 58,286,117 |
| 30 | Philadelphia, PA | 20,295 | 84,104 | 7,250,133 | 23,241,861 | 17,295,606 | 38,248,364 |
| 31 | Portland, OR | 32,739 | 72,102 | 5,491,483 | 46,071,550 | 12,302,117 | 28,714,581 |
| 32 | Tulsa, OK | 29,324 | 30,756 | 4,850,784 | 49,213,737 | 20,344,324 | 26,188,578 |
| 33 | Plano, TX | 55,775 | 41,162 | 4,422,811 | 15,055,453 | 20,766,035 | 41,045,870 |
| 34 | Seattle, WA | 22,923 | 176,663 | 4,190,478 | 16,504,623 | 12,657,307 | 68,573,592 |
| 35 | Fresno, CA | 63,095 | 32,332 | 4,607,135 | 36,616,566 | 15,221,015 | 11,375,953 |
| 36 | Scottsdale, AZ | 58,651 | 41,564 | 3,429,770 | 9,743,624 | 20,359,207 | 42,083,550 |
| 37 | Virginia Beach, VA | 74,678 | 34,129 | 5,735,207 | 11,852,874 | 18,489,122 | 13,187,554 |
| 38 | Reno, NV | 46,509 | 36,726 | 4,834,510 | 40,848,812 | 12,466,863 | 12,866,456 |
| 39 | Chandler, AZ | 72,778 | 29,456 | 2,422,049 | 32,159,355 | 16,316,042 | 19,544,748 |
| 40 | Arlington, TX | 62,652 | 43,933 | 3,820,884 | 26,535,270 | 18,388,808 | 8,673,078 |
| 41 | Aurora, CO | 55,698 | 44,295 | 3,089,368 | 42,532,769 | 14,740,285 | 9,220,019 |
| 42 | Henderson, NV | 109,264 | 33,154 | 3,838,955 | 20,128,023 | 14,509,242 | 8,605,079 |
| 43 | Durham, NC | 56,174 | 46,098 | 3,376,484 | 18,457,464 | 11,283,749 | 23,316,555 |
| 44 | Kansas City, MO | 39,778 | 45,016 | 3,759,794 | 34,666,259 | 8,202,107 | 22,183,084 |
| 45 | Irvine, CA | 33,575 | 62,447 | 4,129,961 | 16,605,087 | 7,437,908 | 40,745,748 |
| 46 | Salt Lake City, UT | 4,986 | 33,269 | 2,405,346 | 77,837,072 | 16,077,224 | 28,006,425 |
| 46 | Greensboro, NC | 37,001 | 29,137 | 3,575,921 | 34,295,941 | 13,574,665 | 13,258,092 |
| 48 | Wichita, KS | 43,632 | 21,535 | 2,637,555 | 24,907,327 | 18,875,755 | 11,701,953 |
| 49 | Irving, TX | 19,994 | 48,538 | 2,006,405 | 42,194,290 | 8,625,308 | 35,942,139 |
| 50 | Minneapolis, MN | 5,495 | 54,723 | 2,243,464 | 26,036,918 | 13,459,142 | 38,126,749 |
| 51 | Cincinnati, OH | 5,688 | 15,216 | 3,624,085 | 29,593,788 | 16,621,328 | 29,534,956 |
| 52 | Richmond, VA | 10,414 | 15,676 | 3,834,895 | 25,378,211 | 15,316,640 | 20,784,801 |
| 53 | Washington, DC | 8,745 | 82,975 | 2,652,839 | 979,778 | 9,473,658 | 104,415,648 |
| 54 | Baltimore City, MD | 9,353 | 21,826 | 5,323,071 | 20,041,624 | 6,785,110 | 26,261,850 |
| 55 | Gilbert, AZ | 82,433 | 13,230 | 2,566,299 | 11,451,575 | 13,891,575 | 13,346,819 |
| 56 | Lubbock, TX | 41,494 | 25,594 | 4,386,832 | 13,214,079 | 14,396,016 | 4,143,083 |
| 57 | Boise, ID | 31,191 | 22,954 | 4,007,635 | 15,848,334 | 10,066,868 | 10,570,999 |
| 58 | Riverside, CA | 23,497 | 20,018 | 3,331,424 | 51,295,759 | 8,378,760 | 6,557,951 |
| 59 | Saint Louis, MO | 4,650 | 15,861 | 4,615,419 | 17,790,308 | 10,940,301 | 29,916,663 |
| 60 | Glendale, AZ | 37,674 | 24,007 | 2,225,572 | 21,231,014 | 14,363,058 | 4,166,613 |
| 61 | Bakersfield, CA | 72,452 | 14,409 | 5,131,990 | 14,537,660 | 6,631,141 | 5,255,199 |
| 62 | North Las Vegas, NV | 70,081 | 16,842 | 2,721,980 | 35,988,036 | 6,462,191 | 2,278,417 |
| 63 | San Francisco, CA | 4,392 | 83,589 | 2,433,256 | 4,560,472 | 6,052,554 | 54,990,695 |
| 64 | Corpus Christi, TX | 43,229 | 19,240 | 3,452,976 | 11,343,380 | 13,191,141 | 6,315,642 |
| 65 | Lincoln, NE | 39,386 | 29,576 | 1,574,549 | 11,003,962 | 15,495,016 | 8,310,685 |
| 66 | Tallahassee, FL | 27,122 | 31,611 | 2,421,569 | 8,062,358 | 10,710,153 | 11,201,455 |
| 67 | Frisco, TX | 60,220 | 26,295 | 1,967,566 | 3,912,848 | 13,174,737 | 8,985,527 |
| 68 | Chesapeake, VA | 52,967 | 12,271 | 2,933,046 | 14,188,360 | 13,411,362 | 6,256,411 |
| 69 | Little Rock, AR | 22,574 | 19,382 | 2,710,311 | 14,091,583 | 11,720,769 | 10,280,962 |
| 70 | Milwaukee, WI | 4,932 | 17,147 | 3,324,682 | 18,196,065 | 10,014,666 | 18,786,015 |
| 71 | Baton Rouge, LA | 9,719 | 11,251 | 5,051,456 | 12,352,033 | 11,007,645 | 11,148,969 |
| 72 | Pittsburgh, PA | 5,450 | 13,005 | 3,902,198 | 7,767,802 | 7,758,994 | 33,514,116 |
| 73 | Tacoma, WA | 13,843 | 21,753 | 2,608,849 | 21,800,955 | 7,070,092 | 4,452,615 |
| 74 | Spokane, WA | 14,979 | 14,149 | 2,603,493 | 10,814,202 | 14,413,889 | 8,805,949 |
| 75 | Garland, TX | 24,256 | 21,690 | 2,262,396 | 19,202,375 | 8,335,280 | 1,796,959 |
| 76 | Grand Prairie, TX | 29,970 | 18,508 | 1,319,147 | 47,782,025 | 6,920,008 | 1,339,637 |
| 77 | Madison, WI | 18,645 | 47,149 | 1,553,530 | 5,668,450 | 2,834,166 | 15,506,524 |
| 78 | Winston Salem, NC | 33,148 | 16,984 | 2,094,771 | 15,895,512 | 5,407,553 | 10,192,193 |
| 79 | Anchorage, AK | 37,486 | 25,146 | 1,135,684 | 7,300,569 | 10,084,347 | 8,159,802 |
| 80 | Rochester, NY | 2,538 | 4,233 | 1,762,754 | 18,744,844 | 16,210,119 | 14,426,647 |
| 81 | Fontana, CA | 35,348 | 8,246 | 1,503,311 | 67,412,973 | 6,686,861 | 644,342 |
| 82 | Boston, MA | 3,337 | 63,285 | 771,538 | 2,064,377 | 4,074,809 | 48,977,301 |
| 83 | New Orleans, LA | 23,000 | 22,481 | 3,935,884 | 2,011,014 | 1,088,148 | 9,500,318 |
| 84 | St. Petersburg, FL | 12,437 | 27,609 | 2,580,343 | 7,516,760 | 6,079,630 | 7,258,295 |
| 85 | Fremont, CA | 18,227 | 19,761 | 930,966 | 29,429,759 | 4,854,936 | 9,420,749 |
| 86 | Cleveland, OH | 6,596 | 5,769 | 1,747,514 | 13,789,653 | 12,532,857 | 18,462,334 |
| 87 | Buffalo, NY | 2,329 | 4,887 | 856,594 | 17,854,877 | 16,227,032 | 15,271,940 |
| 88 | Cape Coral, FL | 78,433 | 17,973 | 1,881,616 | 2,731,233 | 6,713,355 | 2,313,959 |
| 89 | Jersey City, NJ | 6,493 | 48,748 | 1,333,618 | 4,995,599 | 1,826,260 | 15,999,127 |
| 90 | Des Moines, IA | 10,328 | 13,779 | 1,688,508 | 16,475,432 | 6,345,035 | 11,964,898 |
| 91 | Amarillo, TX | 22,359 | 11,385 | 2,315,790 | 9,320,239 | 10,721,967 | 4,258,390 |
| 92 | Modesto, CA | 24,988 | 8,454 | 1,935,202 | 18,099,078 | 7,287,056 | 3,368,118 |
| 93 | Chula Vista, CA | 29,206 | 23,433 | 2,198,828 | 4,595,508 | 6,690,617 | 1,925,444 |
| 94 | Columbus, GA | 21,134 | 14,162 | 2,410,293 | 6,757,358 | 9,846,554 | 4,201,152 |
| 95 | San Bernardino, CA | 10,178 | 8,728 | 1,381,748 | 39,259,281 | 5,184,430 | 6,738,160 |
| 96 | St. Paul, MN | 4,656 | 21,144 | 2,064,292 | 13,880,022 | 2,453,363 | 12,944,604 |
| 96 | Oakland, CA | 8,156 | 30,513 | 1,757,811 | 5,440,566 | 3,123,179 | 11,141,573 |
| 98 | Long Beach, CA | 4,898 | 24,836 | 2,117,660 | 9,279,662 | 5,914,282 | 9,133,438 |
| 99 | Detroit, MI | 3,864 | 17,542 | 1,263,399 | 22,790,962 | 5,966,907 | 10,338,938 |
| 100 | Hialeah, FL | 7,122 | 21,673 | 1,162,179 | 16,209,181 | 9,671,932 | 1,738,836 |
| 101 | Norfolk, VA | 11,779 | 21,661 | 1,829,244 | 4,534,825 | 6,719,253 | 5,831,457 |
| 102 | Anaheim, CA | 10,004 | 23,304 | 1,449,627 | 12,985,714 | 2,528,145 | 5,173,259 |
| 103 | Oxnard, CA | 11,219 | 8,672 | 1,685,134 | 17,123,613 | 5,385,461 | 2,422,338 |
| 104 | Toledo, OH | 4,128 | 9,141 | 1,771,934 | 5,500,904 | 9,817,295 | 4,798,287 |
| 105 | Newark, NJ | 2,875 | 26,012 | 991,547 | 5,101,693 | 672,096 | 6,041,003 |
| 106 | Santa Ana, CA | 4,439 | 14,364 | 737,966 | 4,678,073 | 2,686,066 | 7,874,280 |
| 107 | Worcester, MA | 10,225 | 7,058 | 940,403 | 4,185,012 | 1,938,403 | 3,304,422 |
| 108 | Yonkers, NY | 1,530 | 9,178 | 1,069,056 | 1,235,365 | 5,047,110 | 1,557,248 |
Expert opinions
To gain additional insights on the factors shaping real estate development across the country, we talked with experts in the field.
Doug Ressler, Business Intelligence Manager at Yardi Matrix
How have recent economic changes impacted real estate development in the U.S.?
The surge in interest rates has drastically altered the landscape of the U.S. real estate market, after a period of intense development activity post-pandemic. Real estate developers across the nation are now tapping into unconventional funding sources for their projects, while lenders are exercising increased caution.
With Treasury bond yields nearing an attractive 5%, investors are being asked to settle for lower returns on real estate ventures, while traditional banks, under regulatory pressure, are scaling back their real estate lending activities amid declining property values.
This shift not only increases borrowing costs but also places more power in the hands of private equity and debt funds, potentially leading to a more fragmented and costly financing landscape. As a result, developers and investors must navigate a more complex and expensive environment, which could slow growth and reshape future real estate strategies. Additionally, the ongoing shortage of affordable housing poses significant challenges in many regions across the country.
Moving forward, stakeholders must adapt to these new realities, balancing cautious optimism with a strategic approach to capitalize on opportunities in a very competitive environment.
Which real estate sectors do you think have come out on top in terms of development over the last 50 years?
The multifamily sector, including apartment buildings and the more recent rise of built-to-rent communities, has consistently been a top performer in real estate. Urbanization and a growing preference for rental living, particularly among millennials and younger generations, have driven strong demand. This ongoing trend has solidified multifamily housing as a cornerstone in real estate investment portfolios.
The industrial sector has also experienced significant growth, fueled by the rise of e-commerce. The increasing demand for warehousing, distribution centers, and logistics hubs has led to substantial development in this area.
Meanwhile, the self-storage industry, though less prominent, has quietly expanded over the past 20 years. Driven by population growth and evolving lifestyles, it has become a significant and resilient player in the real estate market, often proving more robust during economic downturns than other sectors.
Norm Miller, Professor Emeritus at the University of San Diego and a Hoyt Faculty Member
Which states or regions do you think will lead in real estate development (both residential and commercial) in the coming years, and why?
States like Georgia, Florida, Arizona (Phoenix), and Texas are expected to see significant increases in supply, particularly in the self-storage sector.
What economic and demographic trends are most likely to influence self storage development in the near future?
Economic Trends:
- Interest Rate Decrease: Lower interest rates will reduce the cost of capital, potentially increasing home sales and demand for storage. We should see this by year end.
- Tariffs: Tariffs on materials like steel, which constitute a significant portion of development costs, can impact the industry negatively, making it more feasible to retrofit big boxes and harder to do ground up development.
Demographic Trends:
- Migration Trends: People are likely to move to cities with job opportunities and affordable living costs. We are continuing to see second and third tier markets gain households while the largest cities lose population, i.e. Los Angeles. For example, most cities in CA with home prices under $1 million median price are not losing population. They are gaining, while the largest metros like LA are losing, so even in a state that is net losing population there are smaller metros that may be seeing increased demand for storage, in some cases, high growth.
- Industry-Related Trends: The introduction of new supply in the self-storage market can significantly impact rental rates, with some markets experiencing rent reductions of over 20%. The large storage suppliers tend to add significant supply in lumps and that can result in an oversupply for two to three years.
- Affordability and Job Opportunities: These factors are expected to drive development in certain areas. Companies requiring employees to return to the office may also influence residential moves closer to job locations. We are still seeing this process evolve. Most firms are going hybrid, but some jobs like biotech, life science, defense, health care and restaurants are not able to tap into WFH. So we see a lot of variation by market in terms of how close people must be to their jobs based on the major industries in that metro.
Bernardo Simoes, Senior Vice President of Real Estate, Global Storage Partners
Are there any technological advancements or sustainability trends that you believe will impact self storage development?
Automated facilities will allow developers to build smaller facilities, since the fixed costs will go down significantly. The technology that will allow that is the following:
Smart entry systems
A smart entry system is a Bluetooth electronic lock and total access control system that allows your customers to easily access your self-storage facility and their unit from their smart device. They can also detect heat so if someone is inside of the unit the manager will be alerted
Example: https://www.janusintl.com/products/noke
Kiosks
Advanced kiosks will allow customers to interact with the management team.
Example: https://www.storable.com/sitelink-integrations/advanced-kiosks/
Cameras with AI
AI technology allows cameras to detect if someone is inside of the facility and alert the security company. In the future, they could also detect leaks, fires, and such, in the property.
Example: https://www.spot.ai/
Security robots:
They can be used to patrol the facility and eventually, in the future, they could also clean the corridors.
Example: https://www.knightscope.com/
Methodology
This analysis was done by StorageCafe, an online platform that provides storage unit listings across the nation.
We analyzed 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 square footage in the case of commercial assets (industrial, office, retail and self storage) and on building permits in the case of residential units. We analyzed 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, 99% of the single family permits and 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 each sector.
The overall ranking of the cities in terms of real estate market activity was calculated as an average of the individual rankings for each of the following metrics:
