The United States has experienced a major increase in affordable apartment construction over the past five years. Nearly 310,000 income-restricted apartments have been completed since 2020, according to a new report from RentCafe.
Even more notable, almost one-third of those units about 91,000 apartments were delivered in 2024 alone, making it the strongest year for affordable housing construction in a decade.
This recent building wave reflects growing pressure to address rental affordability as housing costs remain high across much of the country.
Affordable Housing Growth Outpaces Overall Apartment Construction
Between 2020 and 2024, affordable apartment construction rose 73% compared to the previous five-year period (2015–2019). During that earlier stretch, roughly 179,000 affordable units were built. In contrast, the most recent five-year total approached 310,000 units.
Overall apartment construction also increased, but at a slower pace about 36% growth during the same comparison periods.
Affordable housing now represents a larger share of new development. In 2024, nearly 14% of all newly built apartments were income-restricted. Ten years ago, that figure was under 9%. This shift suggests developers and policymakers are placing greater focus on housing options for lower- and moderate-income renters.
Why Affordable Apartment Construction Is Rising
Several factors helped drive this growth:
- Federal funding programs, including resources from the American Rescue Plan
- Expansion of state-level housing tax credit programs
- Continued use of the Low-Income Housing Tax Credit (LIHTC) program
- Policy changes allowing more flexibility in income averaging
These funding tools helped offset rising construction costs and made it easier for developers to complete projects while keeping rents within regulated limits.
At the same time, population growth in Sun Belt cities and steady demand in coastal metros created strong incentives to expand housing supply.
Cities Leading Affordable Apartment Construction
Some large coastal cities led in total output, but fast-growing Sun Belt markets also saw sharp increases. Below are the top metros for affordable apartment construction over the last five years:
1. Seattle
- New affordable units: 14,290
- Share of new apartments: 24%
- Five-year increase: 39.7%
Seattle ranked first nationwide. About one-quarter of all new apartments built in the metro were income-restricted. A large share of this growth extended beyond the city center into nearby communities.
2. New York City
- New affordable units: 14,240
- Share of new apartments: 32%
- Five-year increase: 185%
New York City recorded one of the sharpest increases in affordable housing output. Nearly one-third of new apartments delivered since 2020 were income-restricted, reflecting strong local housing programs and public investment.
3. Austin
- New affordable units: 13,343
- Share of new apartments: 14%
- Five-year increase: 142%
Austin more than doubled its affordable apartment production compared to the prior five-year period. Rapid population growth and rising home prices increased demand for rental housing options at lower price points.
4. Minneapolis & Saint Paul (Twin Cities)
- New affordable units: 10,722
- Share of new apartments: 19%
- Five-year increase: 85%
The Twin Cities area continued expanding housing options for working households. Nearly one in five new apartments completed since 2020 were income-restricted.
5. Atlanta
- New affordable units: 10,486
- Share of new apartments: 11%
- Five-year increase: 153%
Atlanta saw one of the fastest growth rates in affordable housing output. However, income-restricted units still account for a smaller portion of overall development compared to some other top metros.
Fastest Growth Markets
Beyond total output, several cities posted strong percentage increases in affordable construction:
- San Antonio
- Phoenix
- Charlotte
These markets experienced rapid population growth in recent years, pushing demand for lower-cost rental housing.
What This Means for Renters
While the surge in affordable apartment construction is significant, demand remains high in many areas. Rent growth has slowed in some markets due to higher supply, but affordability challenges persist — especially in major metro areas where overall housing costs remain elevated.
The strong 2024 delivery numbers show that public funding and tax credit programs can move projects forward. However, future growth will depend on continued policy support, stable financing conditions, and construction cost trends.
The Bottom Line
Affordable apartment construction has expanded at a much faster pace than overall apartment development over the past five years. With nearly 310,000 new units delivered since 2020 and a record year in 2024 the U.S. has made measurable progress in expanding rental housing options.
Still, housing affordability remains a long-term challenge. Continued investment and policy support will likely determine whether this building momentum can continue in the years ahead. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
