RCLCO Real Estate Consulting reposted this
Planning now for 2026 Multifamily Deliveries The combination of high supply entering the market in 2024 and declining permits and starts points to a strategic opportunity for developers planning new multifamily units for 2026. The potential for reduced competition, coupled with expected economic recovery and demographic trends favoring rental housing, suggests that now is a good time to start planning future projects. Now is the time to get positioned to capitalize on a more favorable market environment in the next couple of years. Working towards securing capital for those projects is of course a challenge in the current higher interest rate environment, particularly for securing debt. But while current market conditions suggest caution, being overly cautious may result in an undersupply in the future if too few new projects are initiated. Developers and investors need to balance current market conditions with long-term housing demand forecasts to ensure a steady supply of multifamily units in the coming years. #RCLCO #multifamily #rentalhousing #realestatedevelopment
Principal @ Atrium Commercial Real Estate | Commercial Real Estate Expert
1moWe were just discussing this today. We are setting ourselves up for another supply and demand run on rents in two years. We have to figure out a way to be more consistent in deliveries to keep the market stable. It’s a difficult problem to figure out. Not only does it involve the current interest-rate market, increase construction costs, and little to no equity, layer a hostile jurisdictional environment on top and you have a perfect recipe for no deliveries.