Apartment hunting? A new report reveals California’s hottest spots for new builds, with the southern regions leading the surge.
In RentCafe’s 2025 Apartment Construction Report, the Los Angeles metro area is the state’s top builder and the 11th nationwide, with 12,558 units in the pipeline, one-third of which (4,177 units) are in the city of Los Angeles.
While California is the most populous state, and about 44% of Californians rent, one of the highest figures in the U.S., apartment construction in the Golden State accounts for just 8% of the estimated 506,353 units expected nationwide by the end of the year.
While the total is lower than last year, it is still higher than the annual totals recorded each year since 2015, according to the study.
Inland Empire, San Diego hotspots for new apartment builds
The Riverside metro area, including the cities of Riverside and San Bernardino, more than doubled its new units this year, bringing the total to 6,096 units, making it the region with the second biggest building activity in California for 2025.
There are approximately 40,500 apartment units expected to come online by the end of the year in California, according to the study.
In the San Diego metro area, 4,690 apartment units are anticipated by the end of 2025, while Sacramento ranks 5th with 2,281 new apartments.
The Fresno metro area, including the cities of Hanford and Corcoran in the San Joaquin Valley experienced a significant uptick of 43.1% in new apartments, totalling 1,188.
Overall, the study found, the Central Valley is expected to open 2,828 units this year.
Apartments for rent in San Francisco Bay Area a mixed bag
While the study shows the San Francisco Bay area is set to complete 4,175 apartments in 2025, it follows a 51% decrease in construction compared to last year.
Of the expected units, 1,331 are located in the city of San Francisco.
Along a similar vein, San Jose saw 47.8% fewer rental completions compared to 2024, finishing the year with 2,757 new units.
According to ApartmentList, the connection between “supply growth and rent growth” is clear: “markets that build more apartments see fewer rent increases.”
Rents in the San Francisco Bay Area are the fastest-growing in the U.S., increasing by 4.6% across the metro area and 10.6% in the city of San Francisco, while rents in Dallas, Texas, which is experiencing a building boom, are down 1.4% year-over-year.
The remaining approximately 1,800 units are set to be completed on the Central Coast.
