Tall buildings, which were rare for apartments, now make up 14% of new places to live|Diego Delso|CC BY-SA 3.0
Big rental apartment buildings are popping up more than ever before. Why? Well, developers are constructing towering buildings with unprecedented numbers of units, benefiting from relaxed zoning regulations and increased investor interest in smaller cities.
Between 2021 and 2023, over 2,900 buildings with 200 or more apartments were built in US cities, a 17% increase compared to the previous year.
Surprisingly, tall buildings, which were rare for apartments, now make up 14% of new places to live.
Cities like Milwaukee and Atlanta are witnessing record-breaking towers, while Dallas is seeing a rise in taller structures due to limited land availability.
Despite a slight slowdown in rent growth, demand remains steady, propelled by soaring home prices and mortgage rates, making renting a more attractive option for many.
Developers are adapting to market demands by incorporating upscale amenities like gyms and dog parks to appeal to young professionals.
Furthermore, some cities are adjusting regulations to facilitate larger-scale construction, indicating a broader shift towards rental housing over condominiums.