Raleigh hits five-year peak in new apartment construction

Some 420,000 new apartments are expected to be completed in cities across the U.S. this year, marking a 50-year high in multifamily construction, according to data from the listing service RentCafe.

• Zoom in: More than 9,000 apartments are expected to be completed this year in the Raleigh-Cary metro area.

Why it matters: The new supply of units could eventually bring down rental prices, which have recently soared alongside housing prices, making it more difficult for people to find an affordable place to live, Axios' Jacob Knutson reports.

Yes, but: Despite 2021's historic construction boom and the projections for 2022, rental prices still appear to be skyrocketing.

• This is especially true in places like Raleigh and Durham where demand for apartments keeps increasing. Rising home prices and mortgage rates have also kept many would-be homebuyers looking for apartments.

In August, Raleigh rents were up 11.9% year-over-year to a median $1,352 per month for a one-bedroom, according to Apartment List.

• In Durham, over the same time period, rents were up 12.1% year-over-year to a median $1,246 per month for a one-bedroom.

What's next: A recent report from the Downtown Raleigh Alliance shows a pipeline of thousands of new apartments getting ready to begin construction.

Go Deeper: Downtown Raleigh is on the verge of another apartment boom