Los Angeles and San Francisco are facing a slowdown in apartment construction even as the United States is on track to complete a record 518,000 new rental units in 2024, according to a recent report by RentCafe.  Nationally, this represents a 9% increase from last year and a 30% rise compared to 2022.

While Los Angeles and San Francisco are slowing, other areas in California are projected to see growth in new apartment construction. RentCafe’s data reveals that Riverside and Sacramento are expected to increase their apartment supplies by 2028. Riverside is set to add 3,819 more units than in the previous five years, while Sacramento will see an increase of 3,446 apartments during the same period. Santa Rosa is also forecasted to experience growth, with an anticipated 2,815 additional units by 2028.

The full RentCafe report provides detailed data and projections on apartment construction across the U.S., offering valuable insights for landlords and real estate professionals navigating these evolving market dynamics.