Alexandria Among Top Cities For Projected Apartments In U.S.: Report

ALEXANDRIA, VA — Alexandria is one of the cities with significant increases in new apartment construction in 2022, according to a new study from RentCafe.

RentCafe, an apartment search website, analyzed new apartment construction data in 125 U.S. metropolitan areas. Data comes from Yardi Matrix, a resource for brokers, sponsors, banks and equity sources underwriting investments in multifamily and other sectors. Apartment projections in 2022 are based on confirmed and likely apartment completions for 2021 when a certificate of occupancy was issued. On the city level, apartment projections were based on certificates of occupancy issued between Jan. 1 and June 30, 2022.

In 2022, RentCafe estimated 420,000 new apartments will be built across the U.S., with demand for apartments fueling the construction boom. In 2022 and 2021, apartment constructions were estimated to be above 400,000, the highest level since 464,000 in 1972.

The numbers reflect construction ramping up after the pandemic.

"The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues," said Doug Ressler, manager of business intelligence at Yardi Matrix, on RentCafe's study page.

The DC metro area ranks ninth among U.S. metro areas for projected new apartments. The DC region has as many as 12,176 projected new apartments by the end of 2022, according to RentCafe projections. The largest share of the region's projected units would come from Washington, DC — 4,572. Alexandria is second in the region with 1,730 projected units, followed by Arlington with 1,635 projected units, Ashburn with 762, Gaithersburg with 630 and Reston with 546.

Alexandria has already surpassed the projection for 2022 with 1,799 estimated units completed in the first half of 2022. Alexandria ranked 14th among the top cities in the U.S. for apartments built in the first half of 2022. It was the only small city in the top 20 among the likes of Houston, Seattle, Miami and Los Angeles.

A RentCafe spokesperson confirmed the Alexandria data only applied to Alexandria city limits. RentCafe noted the new apartment projections are estimates, and completion dates could change based on various factors.

A major contributor to Alexandria's recent apartment growth is the Carlyle Crossing development anchored by the new Wegmans store. Carlyle Crossing's three apartment communities collectively added 741 residential units between 2021 and 2022.

The Washington Post reported that 300 apartments were added near Mark Center with the opening of The Blake earlier this summer.

See the full RentCafe study on apartment projections for U.S. metro areas here.