A recent analysis looked at the explosive growth in apartment construction nationwide over the last five years, and one North Texas ZIP code made it on the top five list.
RentCafe released the results of its deep dive into the nation’s hotspots for new apartment constructions between 2018 and 2022. The market analysis focused on ZIP codes within the 50 largest U.S. cities.
Two ZIP codes in Washington, D.C., (20002 and 20003) emerged at the very top of the ranking with more than 14,500 units built combined, followed by New York City’s 11101 and Nashville’s 37203, with 7,081 and 6,806 new units, respectively.
Although the analysis referred to the Dallas-Fort Worth region as a hotspot for apartment construction, of the eight zip codes making it into RentCafe’s top 50, Frisco’s 75034 reigned supreme.
During the five years included in the analysis, the Frisco ZIP code saw a significant surge of almost 70% in apartment construction, translating to 5,872 new units. Of these, 96% were classified as “luxury apartments.” The average resident is around 36 years old, with a median income of $65,816.
The city has seen widespread growth, bolstered by several major employers in the area, including PGA of America, Amazon, T-Mobile, and Oracle. Such businesses have contributed to Frisco getting named the fastest-growing municipality in the U.S. between 2000 and 2009 and again in 2018.
Frisco saw significant leaps, such as adding 65,500 new residents between 2010 and 2018 and adding 24,742 more since 2020.
The city now has a population of 227,528. It is projected to increase at an annual growth rate of nearly 4%.
While Frisco has become a major hotspot for all kinds of real estate development, Dallas has seen its share of construction activity decelerate over the years, partly due to the City’s slow and burdensome building permit process under City Manager T.C. Broadnax.
Only two Dallas ZIP codes made it onto RentCafe’s ranking. The first was 75204, placing No.21 with 3,862 new apartment units. Next was 75234, placing No.34 with 3,306 new units.