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Trending In Rentals- As #ApartmentRenters in many cities have been getting some relief from price increases because of the enormous amount of new supply being delivered by developers, new constructions are beginning to slow down as many apartment developers are experiencing difficulties in attaining financing & are stepping on the brakes! As new supply is likely to tapper off in 2025, existing landlords are already anticipating rent increases. Good Read: https://lnkd.in/e9iWS6wA Douglas Elliman Real Estate

Over the past two years, the U.S. multifamily market has seen unprecedented levels of new apartment construction, outpacing demand and raising the national vacancy rate from a low of 4.8% in 2021 to 7.9% in mid-2023. Despite the addition of 1.5 million rental units, only 820,000 absorbed, the market is not overly saturated compared to pre-pandemic levels. To return to a 6.6% vacancy rate seen in late 2019, approximately 280,000 units need to be absorbed. While markets like Austin and Dallas-Fort Worth have notable excess supply, other cities like Chicago, Orange County, and San Jose have managed their supply more effectively, with vacancy rates below pre-pandemic levels due to more conservative construction practices.

Recently apartment tenants have seen rent relief across the country in some of the biggest cities due to “the enormous amount of new supply being delivered by developers.” Despite this period of relief, we shouldn’t expect it to last too long. Apartment construction is beginning to slow due to a rise in interest rates and inflation, pushing construction costs up. That means supply will start to decline while demand is expected to slowly increase (exacerbated by higher home prices). Economic theory teaches us to expect a rise in rent again. #Apartments #PropertyManagers

Apartment Construction to Break Record in 2024: Which US Cities Will See the Most? A report from RentCafe shows new apartment construction in the United States is expected to reach a record high of 518,108 in 2024, reports Mary Salmonsen in an article for Multifamily Dive. That sounds like good news for renters feeling the housing affordability crunch. However, according to the same report, the majority of those units are high-end projects that cater to middle- and higher-income renters. It also predicts says new apartment construction will likely fall year over year between 2025...Read More>>> https://buff.ly/4g48aTd #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #Construction

Apartment Construction to Break Record in 2024: Which US Cities Will See the Most? A report from RentCafe shows new apartment construction in the United States is expected to reach a record high of 518,108 in 2024, reports Mary Salmonsen in an article for Multifamily Dive. That sounds like good news for renters feeling the housing affordability crunch. However, according to the same report, the majority of those units are high-end projects that cater to middle- and higher-income renters. It also predicts says new apartment construction will likely fall year over year between 2025...Read More>>> https://buff.ly/4g48aTd #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #Construction

Many may find this shocking, but I don't. When fewer apartments are built, rents go up. Supply and demand is a simple concept that applies to housing production just like everything else in the marketplace. Do you believe if we build more housing, rents will decrease? Apartment Construction Is Slowing, and Investors Are Betting on Higher Rents - WSJ https://buff.ly/3B69YLq #housing #apartments #development

Apartment construction boomed the last two years but is slowing down significantly. Half a million new apartments were completed nationwide in 2023 (a four-decade high) and a similar number is expected this year. The surge in supply is good news for tenants: it means slower rent growth and more concessions (such as a month of free rent) offered by landlords to fill the new apartments. But developers are launching fewer new projects due to persistently high interest rates and a tighter lending environment. Some banks have been burned on commercial real estate loans (particularly for office buildings) and are exercising caution. Higher construction costs are also dampening the profitability of projects. Expect far fewer new apartments delivered in 2025 and 2026. "The amount of time the average apartment project spends between construction authorization and when construction begins has risen to nearly 500 days, a 45% increase from 2019, according to property data firm Yardi Matrix. Developers also are launching fewer projects amid the financing crunch. Multifamily building starts fell to an annual rate of 322,000 units in April, the lowest April rate since 2020, according to the Census Bureau."

New multifamily supply is slowing down. We anticipated delays and a reduction in new apartment construction starts, and it's playing out exactly as expected. According to recent reports, developers are pausing projects due to rising interest rates and stagnant rents. This trend reduces new future supply in the market, which positions our properties to benefit significantly. With fewer new apartments coming online and assuming continued demand, we foresee an increase in rents for our properties in the coming years after the current new deliveries are absorbed. Read more about the market shift here: https://lnkd.in/g_T_CcqG To learn more about us and our investment thesis - submit a form on our website - https://lnkd.in/gX5_U_Pu #markets #development #supply

As new multifamily construction starts have ground to a halt, well-located multifamily assets are poised to become even more desirable over the next five years. A great read from Will Parker and The Wall Street Journal on falling construction starts and the impact on rents. https://lnkd.in/gw6QeK8e

For over a year, apartment renters in many cities have seen some relief from rising prices due to a surge in new developments. But the tide may be turning. Big investors now believe the downward pressure on rents is ending, and the market is shifting back in favor of landlords, according to a recent The Wall Street Journal article featuring Omar Rihani, EVP and National Residential Sector Leader at Project Management Advisors. Rihani provided insight on investor and developer activity and sentiment, noting, “I think there will be a little bit more hesitation to jump back into overbuilt markets.” Read more: #multifamily #apartmentrenters #projectmanagement #realestate #pma