2025 Supply Increases Notable in New York and Los Angeles

The nation’s largest apartment markets – New York and Los Angeles – are set to see big jumps in apartment delivery volumes in 2025.

In the U.S. overall, supply has been a key storyline, hitting at some of the highest volumes in recent history. The delivery schedule indicates over 599,000 units will be completed across the U.S. in calendar year 2024, according to data from RealPage Market Analytics. In 2025, another 508,000 or so units are set to come online nationwide.

Individual apartment markets, however, are set to reach construction peaks at different time frames. In the case of nation’s two largest apartment markets – New York and Los Angeles – apartment supply is not expected to peak until 2025. And the peaks expected in calendar 2025 are significantly ahead of 2024 completions.

Among the other large markets set to see big increases in delivery volumes in 2025, none come close to the jumps scheduled for New York and Los Angeles.

New York

In New York, a market that is no stranger to big apartment supply, over 34,800 units are slated to come online in calendar 2025. If that planned activity were to wrap up during calendar 2025, it would be the highest level of deliveries RealPage has ever recorded in the New York market. By comparison, nearly 18,900 units are slated to complete in calendar 2024, making calendar 2025 completions 84.5% higher.

This influx of new supply could help alleviate a critical shortfall of housing in New York. Even the product delivering at a high price point could help, as new supply helps free up units at lower price points.

Demand drivers in New York include demographic attraction for a renter-based population and a steady job market ripe with global finance jobs. New York continues to create jobs at the fastest clip nationwide, and that doesn’t seem to be changing anytime soon. In fact, the Emerging Trends in Real Estate report named Manhattan one of the top markets for 2025, based on its stellar job market and its relative improvement in recent years.

Los Angeles

The relative increase between 2024 and 2025 supply is even more extreme in Los Angeles. Apartment developers are slated to wrap up construction on roughly 7,800 units in calendar 2024. In calendar 2025, about 18,700 units are scheduled. If construction timelines hold, that would be more than double the 2024 total. In the five years before 2024, calendar year supply in Los Angeles averaged at about 9,300 units annually, also about half the scheduled 2025 total.

Los Angeles, much like New York, is slated to receive its largest volume of new supply on record in 2025. The difference is, while New York has seen big supply volumes on a national scale recently, the delivery volume in Los Angeles has not been as high.

While Los Angeles also wins in demographic drivers, the job base here is more volatile than it is in New York. In the past five years, the employment base in Los Angeles has increased by only about 17,700 jobs. That’s on par with the job base expansion in Chicago, but below the growth in Virginia Beach.