Durham leads mid-sized markets in apartment construction (8500 under construction)
From Costar, an industry database and market reporting service:
Durham, North Carolina, leads midsized markets in apartment construction The record pipeline comes as apartment construction declines nationally
The number of apartments under construction in Durham, North Carolina, has risen over the past year, and there are now far more apartments under construction in the Bull City than in any other midsize market in the United States.
Construction began on over 4,900 apartments in Durham in 2024, the second-highest annual number after the record 5,600 units that broke ground in 2023, according to CoStar data.
With the abundance of recent construction starts, there are now almost 8,500 units under construction in Durham, the highest number on record since CoStar began tracking the market in 2000. About 58% of the properties being built are higher-end four- and five-star star apartments, with mid-priced three-star units accounting for most of the remaining construction.
No other midsize market has even close to as many apartments under construction as Durham's almost 8,500 units. Among midsize U.S. markets with between 45,000 and 100,000 existing apartments, the city with the second-most construction is Salt Lake City, which has just over 5,700 units underway. The other midsize markets in the top five are Sarasota, Florida; Omaha, Nebraska; and Charleston, South Carolina.
The robust construction in Durham contrasts with national trends. Nationally, the number of units that began construction in 2024 was the lowest since 2013. Furthermore, the number of units under construction across the United States has declined for eight quarters in a row to just 690,000 units today, down from nearly 1.2 million units in early 2023.
The 8,500 units under construction in Durham will increase the market’s inventory by 13.3% when they are completed, while the 690,000 units being built nationally will increase U.S. inventory by just 3.4%, about one-quarter of Durham’s rate.
These recent trends come as developers face considerable headwinds in Durham and around the country. Not only are labor and materials costs high, but elevated interest rates make it expensive to finance construction loans. In addition, vacancies are elevated around the country and are particularly high in Durham. The Durham vacancy rate is currently 12.3%, well above the national average of 8.1%.
Despite those challenges, apartment developers have remained bullish on Durham. The city's population growth and job growth rates continue to outpace national averages, providing builders with some reassurance that their products will eventually find renters.
For example, as of February 2025, Durham’s nonfarm payrolls have risen 10% over the past five years, compared to 4% growth nationally, according to the U.S. Bureau of Labor Statistics.
From Costar, an industry database and market reporting service:
Durham, North Carolina, leads midsized markets in apartment construction The record pipeline comes as apartment construction declines nationally
The number of apartments under construction in Durham, North Carolina, has risen over the past year, and there are now far more apartments under construction in the Bull City than in any other midsize market in the United States.
Construction began on over 4,900 apartments in Durham in 2024, the second-highest annual number after the record 5,600 units that broke ground in 2023, according to CoStar data.
With the abundance of recent construction starts, there are now almost 8,500 units under construction in Durham, the highest number on record since CoStar began tracking the market in 2000. About 58% of the properties being built are higher-end four- and five-star star apartments, with mid-priced three-star units accounting for most of the remaining construction.
No other midsize market has even close to as many apartments under construction as Durham's almost 8,500 units. Among midsize U.S. markets with between 45,000 and 100,000 existing apartments, the city with the second-most construction is Salt Lake City, which has just over 5,700 units underway. The other midsize markets in the top five are Sarasota, Florida; Omaha, Nebraska; and Charleston, South Carolina.
The robust construction in Durham contrasts with national trends. Nationally, the number of units that began construction in 2024 was the lowest since 2013. Furthermore, the number of units under construction across the United States has declined for eight quarters in a row to just 690,000 units today, down from nearly 1.2 million units in early 2023.
The 8,500 units under construction in Durham will increase the market’s inventory by 13.3% when they are completed, while the 690,000 units being built nationally will increase U.S. inventory by just 3.4%, about one-quarter of Durham’s rate.
These recent trends come as developers face considerable headwinds in Durham and around the country. Not only are labor and materials costs high, but elevated interest rates make it expensive to finance construction loans. In addition, vacancies are elevated around the country and are particularly high in Durham. The Durham vacancy rate is currently 12.3%, well above the national average of 8.1%.
Despite those challenges, apartment developers have remained bullish on Durham. The city's population growth and job growth rates continue to outpace national averages, providing builders with some reassurance that their products will eventually find renters.
For example, as of February 2025, Durham’s nonfarm payrolls have risen 10% over the past five years, compared to 4% growth nationally, according to the U.S. Bureau of Labor Statistics.