Special Report

Cities Where New Apartment Construction Is Skyrocketing

ilkercelik / iStock via Getty Images

The U.S. faces a severe housing crunch. The country needs 3.8 million homes to house its citizens, according to estimates from Up For Growth, a research organization focused on housing affordability and production. That’s double from 2012, when the nation was 1.65 million units short. (Here is how much land people live on in every state.)

One potential solution is high-density housing. Buildings of five or more units can shelter more people on scarce urban and suburban land. In recent years, more cities across the country appear to be taking that approach, some growing their high-density building considerably more than others, often in response to development and population growth. 

To determine the cities that are building the most new high density housing, 24/7 Wall St. reviewed data from the U.S. Census Bureau’s monthly Build Permits Survey, using annual data from 2021 and 2016. Cities were ranked based on the percentage-point change in the number of new construction permits for buildings with five units or more as a share of all buildings from 2016 to 2021. All other data came from the Census.

Ranking by the change in high-density building permits, the Philadelphia-Camden-Wilmington metro area straddling New Jersey, Pennsylvania, Delaware, and Maryland could see a boom in multifamily construction if all are built. In 2021, 70% of new permits were for units of five or more units, up 34 points from 2016. Those units will help house the area’s 6 million residents. 

Not far behind is the Santa Rosa-Petaluma, California metro area north of San Francisco. More than 50% of new permits were for multifamily buildings in 2021, a 24 point increase from 2016. Between 2016 and 2021, permits for five or more housing units skyrocketed 430%. Its current population stands at a bit less than 500,000. But considering its location at the fringe of the tech industry in northern California, that number will likely grow. (Find out if any of these cities are also among the cities with the strongest economies in 2022.)

No. 3 is Worcester, in central Massachusetts, which recorded a 21.1-point jump in new permits for dwellings of five or more units as a percentage of all permits from 2016 to 2021. About 37% of new permits were for multifamily construction. Meanwhile, 53% of permits in No. 50 Denver were registered last year for buildings of five or more units, but that was a mere 2.3 percentage points higher than in 2016. In 20 cities, there was a 10 point jump in new permits for housing of five or more units.

Click here to see cities where new apartment construction is skyrocketing.

Click here to see our detailed methodology.

milehightraveler / iStock via Getty Images

50. Denver-Aurora-Lakewood, CO
> New building permits with 5+ units, 2021: 53.4% of all permits (+2.3 ppts from 2016)
> New building permits with 5+ units, 2016: 51.1% of all permits
> Median rent: $1,605 per month
> Population density, 2021: 356.2 people per square mile
> Total population, 2021: 3.0 million

[in-text-ad]

DenisTangneyJr / iStock via Getty Images

49. Fresno, CA
> New building permits with 5+ units, 2021: 11.8% of all permits (+2.3 ppts from 2016)
> New building permits with 5+ units, 2016: 9.5% of all permits
> Median rent: $1,164 per month
> Population density, 2021: 170.1 people per square mile
> Total population, 2021: 1.0 million

GJGK Photography / iStock via Getty Images

48. Houston-The Woodlands-Sugar Land, TX
> New building permits with 5+ units, 2021: 22.6% of all permits (+2.4 ppts from 2016)
> New building permits with 5+ units, 2016: 20.2% of all permits
> Median rent: $1,190 per month
> Population density, 2021: 871.6 people per square mile
> Total population, 2021: 7.2 million

47. Burlington, NC
> New building permits with 5+ units, 2021: 31.0% of all permits (+2.4 ppts from 2016)
> New building permits with 5+ units, 2016: 28.6% of all permits
> Median rent: $894 per month
> Population density, 2021: 410.6 people per square mile
> Total population, 2021: 173,877

[in-text-ad-2]

TomasSereda / iStock via Getty Images

46. New York-Newark-Jersey City, NY-NJ-PA
> New building permits with 5+ units, 2021: 72.8% of all permits (+2.6 ppts from 2016)
> New building permits with 5+ units, 2016: 70.2% of all permits
> Median rent: $1,600 per month
> Population density, 2021: 2,957.4 people per square mile
> Total population, 2021: 19.8 million

Art Wager / E+ via Getty Images

45. Miami-Fort Lauderdale-Pompano Beach, FL
> New building permits with 5+ units, 2021: 65.4% of all permits (+2.8 ppts from 2016)
> New building permits with 5+ units, 2016: 62.6% of all permits
> Median rent: $1,519 per month
> Population density, 2021: 1,202.2 people per square mile
> Total population, 2021: 6.1 million

[in-text-ad]

ABEMOS / iStock via Getty Images

44. Virginia Beach-Norfolk-Newport News, VA-NC
> New building permits with 5+ units, 2021: 34.6% of all permits (+3.3 ppts from 2016)
> New building permits with 5+ units, 2016: 31.3% of all permits
> Median rent: $1,232 per month
> Population density, 2021: 511.7 people per square mile
> Total population, 2021: 1.8 million

beklaus / E+ via Getty Images

43. Boulder, CO
> New building permits with 5+ units, 2021: 62.4% of all permits (+3.6 ppts from 2016)
> New building permits with 5+ units, 2016: 58.8% of all permits
> Median rent: $1,732 per month
> Population density, 2021: 453.7 people per square mile
> Total population, 2021: 329,543

SeanPavonePhoto / iStock via Getty Images

42. Orlando-Kissimmee-Sanford, FL
> New building permits with 5+ units, 2021: 40.7% of all permits (+3.7 ppts from 2016)
> New building permits with 5+ units, 2016: 37.0% of all permits
> Median rent: $1,420 per month
> Population density, 2021: 771.0 people per square mile
> Total population, 2021: 2.7 million

[in-text-ad-2]

marekuliasz / iStock via Getty Images

41. Greeley, CO
> New building permits with 5+ units, 2021: 19.9% of all permits (+3.9 ppts from 2016)
> New building permits with 5+ units, 2016: 16.1% of all permits
> Median rent: $1,333 per month
> Population density, 2021: 85.3 people per square mile
> Total population, 2021: 340,036

SeanPavonePhoto / iStock Editorial via Getty Images

40. Durham-Chapel Hill, NC
> New building permits with 5+ units, 2021: 35.9% of all permits (+3.9 ppts from 2016)
> New building permits with 5+ units, 2016: 32.0% of all permits
> Median rent: $1,147 per month
> Population density, 2021: 285.6 people per square mile
> Total population, 2021: 654,012

[in-text-ad]

Kruck20 / iStock via Getty Images

39. Raleigh-Cary, NC
> New building permits with 5+ units, 2021: 34.0% of all permits (+4.2 ppts from 2016)
> New building permits with 5+ units, 2016: 29.9% of all permits
> Median rent: $1,266 per month
> Population density, 2021: 683.7 people per square mile
> Total population, 2021: 1.4 million

ChrisBoswell / iStock via Getty Images

38. Springfield, MO
> New building permits with 5+ units, 2021: 34.0% of all permits (+4.3 ppts from 2016)
> New building permits with 5+ units, 2016: 29.7% of all permits
> Median rent: $802 per month
> Population density, 2021: 159.5 people per square mile
> Total population, 2021: 479,598

37. Albany-Schenectady-Troy, NY
> New building permits with 5+ units, 2021: 43.8% of all permits (+4.6 ppts from 2016)
> New building permits with 5+ units, 2016: 39.3% of all permits
> Median rent: $1,091 per month
> Population density, 2021: 319.8 people per square mile
> Total population, 2021: 899,286

[in-text-ad-2]

travelview / iStock via Getty Images

36. Santa Maria-Santa Barbara, CA
> New building permits with 5+ units, 2021: 49.9% of all permits (+4.8 ppts from 2016)
> New building permits with 5+ units, 2016: 45.1% of all permits
> Median rent: $1,859 per month
> Population density, 2021: 163.3 people per square mile
> Total population, 2021: 446,475

f11photo / iStock via Getty Images

35. New Orleans-Metairie, LA
> New building permits with 5+ units, 2021: 17.5% of all permits (+5.1 ppts from 2016)
> New building permits with 5+ units, 2016: 12.4% of all permits
> Median rent: $1,069 per month
> Population density, 2021: 393.9 people per square mile
> Total population, 2021: 1.3 million

[in-text-ad]

Jorge Moro / iStock via Getty Images

34. Portland-South Portland, ME
> New building permits with 5+ units, 2021: 23.1% of all permits (+5.1 ppts from 2016)
> New building permits with 5+ units, 2016: 18.0% of all permits
> Median rent: $1,204 per month
> Population density, 2021: 267.6 people per square mile
> Total population, 2021: 556,893

eyfoto / iStock via Getty Images

33. Champaign-Urbana, IL
> New building permits with 5+ units, 2021: 56.0% of all permits (+5.4 ppts from 2016)
> New building permits with 5+ units, 2016: 50.6% of all permits
> Median rent: $913 per month
> Population density, 2021: 155.2 people per square mile
> Total population, 2021: 222,696

halbergman / iStock via Getty Images

32. Burlington-South Burlington, VT
> New building permits with 5+ units, 2021: 49.9% of all permits (+5.4 ppts from 2016)
> New building permits with 5+ units, 2016: 44.5% of all permits
> Median rent: $1,458 per month
> Population density, 2021: 181.4 people per square mile
> Total population, 2021: 226,715

[in-text-ad-2]

Sean Pavone / iStock via Getty Images

31. Cincinnati, OH-KY-IN
> New building permits with 5+ units, 2021: 34.3% of all permits (+5.9 ppts from 2016)
> New building permits with 5+ units, 2016: 28.4% of all permits
> Median rent: $923 per month
> Population density, 2021: 497.5 people per square mile
> Total population, 2021: 2.3 million

roman_slavik / iStock via Getty Images

30. Seattle-Tacoma-Bellevue, WA
> New building permits with 5+ units, 2021: 66.1% of all permits (+6.9 ppts from 2016)
> New building permits with 5+ units, 2016: 59.2% of all permits
> Median rent: $1,730 per month
> Population density, 2021: 683.4 people per square mile
> Total population, 2021: 4.0 million

[in-text-ad]

tristanbnz / iStock via Getty Images

29. Coeur dAlene, ID
> New building permits with 5+ units, 2021: 29.3% of all permits (+8.4 ppts from 2016)
> New building permits with 5+ units, 2016: 20.9% of all permits
> Median rent: $1,176 per month
> Population density, 2021: 145.3 people per square mile
> Total population, 2021: 179,789

Sean Pavone / iStock via Getty Images

28. Huntsville, AL
> New building permits with 5+ units, 2021: 30.9% of all permits (+8.5 ppts from 2016)
> New building permits with 5+ units, 2016: 22.5% of all permits
> Median rent: $974 per month
> Population density, 2021: 369.2 people per square mile
> Total population, 2021: 502,728

benedek / iStock Unreleased via Getty Images

27. Ithaca, NY
> New building permits with 5+ units, 2021: 79.7% of all permits (+9.0 ppts from 2016)
> New building permits with 5+ units, 2016: 70.6% of all permits
> Median rent: $1,272 per month
> Population density, 2021: 221.6 people per square mile
> Total population, 2021: 105,162

[in-text-ad-2]

Kruck20 / iStock via Getty Images

26. Nashville-Davidson–Murfreesboro–Franklin, TN
> New building permits with 5+ units, 2021: 45.0% of all permits (+9.3 ppts from 2016)
> New building permits with 5+ units, 2016: 35.7% of all permits
> Median rent: $1,260 per month
> Population density, 2021: 353.9 people per square mile
> Total population, 2021: 2.0 million

pawel.gaul / E+ via Getty Images

25. Detroit-Warren-Dearborn, MI
> New building permits with 5+ units, 2021: 30.9% of all permits (+9.5 ppts from 2016)
> New building permits with 5+ units, 2016: 21.5% of all permits
> Median rent: $1,051 per month
> Population density, 2021: 1,121.5 people per square mile
> Total population, 2021: 4.4 million

[in-text-ad]

marchello74 / iStock via Getty Images

24. Madison, WI
> New building permits with 5+ units, 2021: 72.8% of all permits (+9.6 ppts from 2016)
> New building permits with 5+ units, 2016: 63.2% of all permits
> Median rent: $1,157 per month
> Population density, 2021: 206.5 people per square mile
> Total population, 2021: 683,183

EunikaSopotnicka / iStock via Getty Images

23. Rapid City, SD
> New building permits with 5+ units, 2021: 53.6% of all permits (+9.7 ppts from 2016)
> New building permits with 5+ units, 2016: 44.0% of all permits
> Median rent: $1,002 per month
> Population density, 2021: 22.6 people per square mile
> Total population, 2021: 141,190

Sean Pavone / iStock via Getty Images

22. Manchester-Nashua, NH
> New building permits with 5+ units, 2021: 42.4% of all permits (+9.8 ppts from 2016)
> New building permits with 5+ units, 2016: 32.6% of all permits
> Median rent: $1,393 per month
> Population density, 2021: 483.8 people per square mile
> Total population, 2021: 424,079

[in-text-ad-2]

DustyPixel / iStock via Getty Images

21. Sacramento-Roseville-Folsom, CA
> New building permits with 5+ units, 2021: 23.0% of all permits (+9.9 ppts from 2016)
> New building permits with 5+ units, 2016: 13.0% of all permits
> Median rent: $1,556 per month
> Population density, 2021: 473.3 people per square mile
> Total population, 2021: 2.4 million

Gian Lorenzo Ferretti Photography / E+ via Getty Images

20. Minneapolis-St. Paul-Bloomington, MN-WI
> New building permits with 5+ units, 2021: 53.3% of all permits (+10.2 ppts from 2016)
> New building permits with 5+ units, 2016: 43.1% of all permits
> Median rent: $1,246 per month
> Population density, 2021: 523.6 people per square mile
> Total population, 2021: 3.7 million

[in-text-ad]

19. Omaha-Council Bluffs, NE-IA
> New building permits with 5+ units, 2021: 40.6% of all permits (+10.4 ppts from 2016)
> New building permits with 5+ units, 2016: 30.2% of all permits
> Median rent: $1,007 per month
> Population density, 2021: 223.7 people per square mile
> Total population, 2021: 972,195

knowlesgallery / iStock via Getty Images

18. Boise City, ID
> New building permits with 5+ units, 2021: 26.2% of all permits (+10.8 ppts from 2016)
> New building permits with 5+ units, 2016: 15.5% of all permits
> Median rent: $1,222 per month
> Population density, 2021: 68.1 people per square mile
> Total population, 2021: 801,470

DenisTangneyJr / E+ via Getty Images

17. Boston-Cambridge-Newton, MA-NH
> New building permits with 5+ units, 2021: 65.7% of all permits (+11.6 ppts from 2016)
> New building permits with 5+ units, 2016: 54.1% of all permits
> Median rent: $1,718 per month
> Population density, 2021: 1,405.6 people per square mile
> Total population, 2021: 4.9 million

[in-text-ad-2]

Jacob Boomsma / iStock via Getty Images

16. Colorado Springs, CO
> New building permits with 5+ units, 2021: 42.0% of all permits (+12.1 ppts from 2016)
> New building permits with 5+ units, 2016: 30.0% of all permits
> Median rent: $1,465 per month
> Population density, 2021: 284.2 people per square mile
> Total population, 2021: 762,792

RAUL RODRIGUEZ / iStock Editorial via Getty Images

15. Austin-Round Rock-Georgetown, TX
> New building permits with 5+ units, 2021: 50.4% of all permits (+12.4 ppts from 2016)
> New building permits with 5+ units, 2016: 37.9% of all permits
> Median rent: $1,427 per month
> Population density, 2021: 557.5 people per square mile
> Total population, 2021: 2.4 million

[in-text-ad]

DenisTangneyJr / iStock via Getty Images

14. Ogden-Clearfield, UT
> New building permits with 5+ units, 2021: 41.8% of all permits (+12.5 ppts from 2016)
> New building permits with 5+ units, 2016: 29.3% of all permits
> Median rent: $1,123 per month
> Population density, 2021: 98.0 people per square mile
> Total population, 2021: 708,543

benedek / iStock via Getty Images

13. Naples-Marco Island, FL
> New building permits with 5+ units, 2021: 32.6% of all permits (+14.2 ppts from 2016)
> New building permits with 5+ units, 2016: 18.4% of all permits
> Median rent: $1,503 per month
> Population density, 2021: 193.3 people per square mile
> Total population, 2021: 385,980

halbergman / E+ via Getty Images

12. Olympia-Lacey-Tumwater, WA
> New building permits with 5+ units, 2021: 59.4% of all permits (+14.4 ppts from 2016)
> New building permits with 5+ units, 2016: 45.0% of all permits
> Median rent: $1,474 per month
> Population density, 2021: 412.4 people per square mile
> Total population, 2021: 297,977

[in-text-ad-2]

11. Killeen-Temple, TX
> New building permits with 5+ units, 2021: 27.1% of all permits (+14.7 ppts from 2016)
> New building permits with 5+ units, 2016: 12.5% of all permits
> Median rent: $1,009 per month
> Population density, 2021: 172.6 people per square mile
> Total population, 2021: 486,416

Sean Pavone / iStock via Getty Images

10. Albuquerque, NM
> New building permits with 5+ units, 2021: 35.1% of all permits (+14.8 ppts from 2016)
> New building permits with 5+ units, 2016: 20.3% of all permits
> Median rent: $961 per month
> Population density, 2021: 99.2 people per square mile
> Total population, 2021: 921,311

[in-text-ad]

DenisTangneyJr / iStock via Getty Images

9. Provo-Orem, UT
> New building permits with 5+ units, 2021: 29.2% of all permits (+15.0 ppts from 2016)
> New building permits with 5+ units, 2016: 14.2% of all permits
> Median rent: $1,253 per month
> Population density, 2021: 129.1 people per square mile
> Total population, 2021: 696,699

benedek / iStock Unreleased via Getty Images

8. Bend, OR
> New building permits with 5+ units, 2021: 31.4% of all permits (+15.6 ppts from 2016)
> New building permits with 5+ units, 2016: 15.7% of all permits
> Median rent: $1,569 per month
> Population density, 2021: 67.9 people per square mile
> Total population, 2021: 204,801

Jon Bilous / iStock via Getty Images

7. Missoula, MT
> New building permits with 5+ units, 2021: 73.2% of all permits (+16.2 ppts from 2016)
> New building permits with 5+ units, 2016: 57.0% of all permits
> Median rent: $1,034 per month
> Population density, 2021: 46.1 people per square mile
> Total population, 2021: 119,533

[in-text-ad-2]

Sean Pavone / iStock via Getty Images

6. Richmond, VA
> New building permits with 5+ units, 2021: 33.0% of all permits (+17.2 ppts from 2016)
> New building permits with 5+ units, 2016: 15.8% of all permits
> Median rent: $1,202 per month
> Population density, 2021: 301.9 people per square mile
> Total population, 2021: 1.3 million

5. Bellingham, WA
> New building permits with 5+ units, 2021: 49.2% of all permits (+18.1 ppts from 2016)
> New building permits with 5+ units, 2016: 31.1% of all permits
> Median rent: $1,347 per month
> Population density, 2021: 108.6 people per square mile
> Total population, 2021: 228,831

[in-text-ad]

XXLPhoto / iStock via Getty Images

4. Eugene-Springfield, OR
> New building permits with 5+ units, 2021: 54.1% of all permits (+18.7 ppts from 2016)
> New building permits with 5+ units, 2016: 35.4% of all permits
> Median rent: $1,131 per month
> Population density, 2021: 84.1 people per square mile
> Total population, 2021: 383,189

SeanPavonePhoto / iStock via Getty Images

3. Worcester, MA-CT
> New building permits with 5+ units, 2021: 37.0% of all permits (+21.1 ppts from 2016)
> New building permits with 5+ units, 2016: 15.9% of all permits
> Median rent: $1,168 per month
> Population density, 2021: 483.5 people per square mile
> Total population, 2021: 978,447

2. Santa Rosa-Petaluma, CA
> New building permits with 5+ units, 2021: 51.5% of all permits (+23.9 ppts from 2016)
> New building permits with 5+ units, 2016: 27.6% of all permits
> Median rent: $1,900 per month
> Population density, 2021: 308.4 people per square mile
> Total population, 2021: 485,887

[in-text-ad-2]

Ultima_Gaina / iStock via Getty Images

1. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
> New building permits with 5+ units, 2021: 70.0% of all permits (+33.6 ppts from 2016)
> New building permits with 5+ units, 2016: 36.4% of all permits
> Median rent: $1,258 per month
> Population density, 2021: 1,353.1 people per square mile
> Total population, 2021: 6.2 million

Methodology

To determine the cities that are building the most high-density housing, 24/7 Wall St. reviewed data from the U.S. Census Bureau’s monthly Build Permits Survey, using annual data from 2021 and 2016. Cities were ranked based on the percentage-point change in the number of new construction permits for buildings with five units or more as a share of all buildings from 2016 to 2021. 

Supplemental data on new building permits for all buildings also came from the U.S. Census Bureau. Data on population and median monthly rent are from the 2021 American Community Survey and are one-year estimates. Data on land area used to calculate population density came from the U.S. Census Bureau and are current as of 2021.

Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.