Apartment construction starts in the United States declined to approximately 55,000 units in the first quarter of 2026, marking a 73% decrease from the peak reached in early 2022 and representing the lowest quarterly level since 2011, according to data released by Apartments.com and CoStar Group (NASDAQ: CSGP).

The national apartment construction pipeline contracted to roughly 579,000 units under construction in the first quarter, down more than 50% from its peak in early 2023. This figure aligns with mid-2010 levels, the companies reported.

"Developers have pulled back sharply as weaker rent growth and higher financing costs weigh on project feasibility," said Grant Montgomery, National Director of U.S. Multifamily Analytics at CoStar Group.

Annual apartment deliveries peaked in 2024 and have declined by approximately 26% over the past four quarters. The market continues to absorb completions from projects financed earlier in the development cycle.

Construction activity varies by region, with the Mountain and South regions maintaining the highest construction exposure relative to inventory at about 3.3% and 3.2% of stock under construction, respectively.

New York City holds the largest absolute construction pipeline, followed by Dallas-Fort Worth. Miami and Charlotte currently show the highest construction levels relative to existing inventory, with more than 6% of apartment stock under construction.

The data indicates that slower rent growth, elevated financing costs and high development expenses have limited new project feasibility across most markets, according to the press release.