Corinne Pulitzer’s Post

As apartment construction slows across the U.S., big investors are betting on higher rents as a result. With fewer new buildings coming to market, the supply of apartments is shrinking, leading experts to anticipate a boost in rent growth and property values. Developers are halting projects due to rising interest rates and tighter financing, leaving investment firms to seize opportunities in existing properties. Will the slowdown continue, and how will it affect rental markets nationwide? Continue reading The Wall Street Journal article to find out more about the changing landscape in multifamily real estate.

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

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

The U.S. is experiencing the biggest apartment construction boom in 40 years, adding over 1.2 million new units in the last two years! 🏙️ With demand rising to the highest levels since 2021, these new spaces are quickly filling up. If this demand continues, paired with a strong economy and high housing prices, we may see landlords gaining more pricing power in 2025. Here’s what to expect: 🏠 Over 672,000 units completed by the end of 2024 🏢 Fewer new units are expected in 2025 and even fewer in 2026. This means available apartment inventory could start tightening up. As we look ahead, renters may want to lock in rates now, while landlords could see an opportunity for rental growth in the future. amy@cincoranchrealtygroup.com 8322360699 Photo Credit: Canva; by Pro Creators #CincoRanchRealtyGroup #AmyLookabaugh #cincoranchrealtygroup #amylookabaugh #realestatemarket #rentaltrends #apartments #housingmarket #2025realestate #newapartments #realestateinsights #compass #agentsofcompass #compassfulshear #compasstexas #texasrealestate #compassrealestate #compasseverywhere

BREAKING: Only 52% of newly constructed #apartments in Q2 2024 were rented within 3 months of completion, the 2nd lowest reading since 2020. This is down from the 74% record posted in Q3 2021, according to Redfin. 1-bedroom and 2-bedroom apartments saw the biggest declines driven by the spike in new apartment #construction. Apartment completions jumped 22.6% year-over-year to 117,500 in Q2, the highest in at least 12 years. Completions are up by a whopping 56.6% over the last 2 years. The US #housing market seems to be slowing.

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."

🏘️ Only 52% of newly constructed apartments in Q2 2024 were rented within 3 months of completion, the 2nd lowest reading since 2020. 📉 This is down from the 74% record posted in Q3 2021, according to Redfin. 🔻 1-bedroom and 2-bedroom apartments saw the biggest declines driven by the spike in new apartment construction. 📈 Apartment completions jumped 22.6% year-over-year to 117,500 in Q2, the highest in at least 12 years. 🚀 Completions are up by a whopping 56.6% over the last 2 years. 👉 Does the the US housing market seem to be slowing??? What do you think? Leave us a comment below!

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

Indeed, there are important nuances in the multifamily supply demand equation that need to be analyzed across property types, micro-markets and more. Firms with a strong research-led approach that enables them to uncover these imbalances will be better positioned in this market.