Apartment Construction Slowed Down Nationwide. What about Henry County?

Fewer apartments began construction across the United States in 2024. Factors such as higher interest rates and higher overall vacancies contributed to a slow-down in the development pipeline, according to industry market reports. If that’s the trend nationwide, then does that extend to Henry County? The number of units starting construction in 2024 was above the 2023 pace. It was consistent with numbers seen in 2021 and 2022.

Since 2021, about 4,500 apartments have broken ground in Henry County. Over 7,600 additional units are in the development pipeline.

National & Metro Atlanta Trend

RentCafe reported in August 2024 that over 500,000 apartments were on pace to finish construction last year. That represented an all-time high in the country. They estimate, however, that deliveries will slow in 2025-27. RentCafe estimates 2027 will see the fewest new apartments complete since 2015. Their forecast then predicts supply will trend upward again in 2028.

Cushman & Wakefield offers additional insights in their third quarter 2024 market report:

New construction continues to pull back. There are 609,000 units currently under construction, down 36% from the peak levels in the first quarter of 2023. Fewer units are breaking ground given the interest rate backdrop and higher overall vacancies.

Cushman & Wakefield Q3 2024 National Market Report, accessed January 4, 2025.

Furthermore, the company’s Atlanta market report offers more local insights:

In [Quarter 3], development activity slowed across the metro. Though 5,095 units delivered within 21 buildings, the current interest rate climate coupled with challenging construction financing have deterred developers from breaking ground causing the construction pipeline to taper for the sixth consecutive quarter. Currently, 22,217 units are underway across the metro, marking a 38.7% decline since Q3 2023.

Cushman & Wakefield Q3 2024 Atlanta Market Report, accessed January 4, 2025.

Henry County Apartments Construction

The Henry Reporter has steadily tracked and reported on apartments construction within Henry County for several years. During that time, the number of units under construction has largely remained steady. This is despite the above reports about apartment construction slowing down both nationally and in metro Atlanta.

Here is a look at construction activity between 2021-2024:

As of January 2025, there’s about 7,600 apartments in the Henry County development pipeline. About half of these units (3,760) are part of one proposal, The Grove, near Hampton. That project goes before the county zoning board this month. The board of commissioners could consider it as soon as February.

Featured image shows a map and chart of apartments construction in Henry County. Clayton Carte graphics made with Datawrapper.