Over the past five years, new apartment construction has reached levels not seen since the early 1980s. From 2020 to 2024, there were 1.8 million units delivered nationwide — a 37% increase compared to the previous five-year period. Although new construction starts have decreased over the last one to two years due to rising interest rates, the influx of newly completed units is already impacting investors across the country. 

CENTRAL VALLEY SNAPSHOT (2020–2024)

Total Units Delivered in Central Valley: 11,153

Key markets:

• Visalia: 635 – 12.48% increase in inventory
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• Bakersfield: 2,264 – 8.18% increase in inventory
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• Fresno/Clovis: 4,073 – 7.57% increase in inventory
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• Modesto: 528 – 3.60% increase in inventory
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WHY DOES THIS MATTER?

Rent growth, competition

Owners now face greater competition to retain tenants and often hesitate to raise rents due to fears of turnover and its associated costs with the guarantee of a premium.

Vacancy rates

With so many new units, the market has seen an uptick in vacancy. In Fresno for example, vacancy how grown from a low of 1.8% in mid-2021 to 4.4% percent.

Unit finishes, amenities

In a competitive environment, maintaining updated finishes and amenities helps attract quality tenants and preserve rental income.

If you would like to learn more about how much new supply has been added in your market or how it could affect your investment, reach out to Visintainer Group. As a brokerage specializing in multi-family assets, we combine up-to-date market data with expert guidance to help you navigate changing conditions and ensure you’re positioned for success.

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Blake Blackburn, is a multi-family investment advisor with the Visintainer Group in Fresno, CA. Formed in 2018 and built on a foundation of investment real estate, the Visintainer Group is a client-first commercial real estate firm. The Group has executed over $900 million in transactions across the United States. Blake specializes in multi-family property acquisitions and dispositions for owners in the Central Valley market. He can be reached at 559.669.3686 or blake@visintainergroup.com.