GrowthSpotter’s Post

2023 Regional Multifamily Construction Trends - In 2023, the South had the highest total number of multifamily units completed (209,000) and the highest growth rate (40.3%) of any U.S. region. - The Northeast (55.6%) and West (53.0%) had the highest shares of completed units with one or fewer bedrooms. - Small multifamily construction jumped in both the South (50.7%) and Midwest (42.9%). Arbor Realty Trust Chandan Economics

Rents expected to rise as multifamily construction slows..... #HousingMarket #HomeSales #BuyersMarket #RealEstate #luxuryhomes #realestateinvesting #realestatelife #Realty #houseforsale #justlisted #kellerwilliams #SteveFordrealestate

After a decade of high-volume apartment construction, Houston’s multifamily market is entering a new phase. Annual deliveries, which peaked at over 25,000 units in mid-2024—the highest since the 1980s—are expected to gradually decrease to more normalized levels. This shift aligns with the end of an era of unprecedented construction waves and could signify new opportunities. #multifamily #supplyanddemand #marketshift

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.

11 markets that are highly active for apartment construction today, BUT might not be for long which could be a clue for faster-than-average rebounds out of the current supply-driven slowdown. In these 11 markets, multifamily building permits are back BELOW pre-COVID norms seen between 2015-2019. There are some interesting surprises here. https://lnkd.in/gSFpezNf #multifamily #supply #demand

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

The multifamily construction boom is reshaping the U.S. housing market, with 1.8 million units set to hit the market in the next five years. CoStar's latest report highlights what this surge means for the industry. Key Takeaways Record-Level Construction Activity: A historic influx of multifamily units is underway, with 1.8 million new units planned over the next five years. This construction wave reflects developers' response to long-standing housing shortages. Impacts on Supply and Demand Dynamics: While new construction addresses inventory needs, market absorption and regional disparities will dictate its impact. Developers must navigate economic uncertainties and shifting tenant preferences to ensure success. Opportunities in Market Segmentation: The surge in construction creates opportunities to meet diverse housing needs, from affordable units to luxury offerings. Targeted strategies will be essential to align with evolving demographics and housing demands. As multifamily construction surges, staying ahead means understanding market dynamics and strategically aligning developments with demand. #MultifamilyConstruction #HousingTrends #RealEstateDevelopment #CREInsights #AffordableHousing #MarketOpportunities #HousingSupply

Unpacking Multifamily Supply Risks and Demand Booms Over the past year, demand for apartments has surged while construction levels wane, prompting an analysis of the impacts on the multifamily market generally https://lnkd.in/gnZ6Nv_V

"Decline in Multifamily Market at the End of 2024" Read the full article below..

🏢 Multifamily construction is slowing in the Twin Cities. Here’s why and what’s going on: ➡️ Star Tribune reported that apartment construction ground to a halt in June with developers in the metro receiving permits for just 24 units. ➡️ Multifamily projects are usually modeled 1-2 years before interest rates are set. If rates go up (like they have been), builders can struggle to make those projects pencil out. ➡️ On the flip side, for-sale, new construction single-family continues to surge with experts from Housing First Minnesota stating more and more buyers are being drawn to new construction as they adapt to interest rates. #RealEstate #RealEstateInvesting #Investing #TwinCitiesRealEstate