Robert Salwasser’s Post

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

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

The apartment market is seeing positive changes! After a boom in construction over the past two years, supply is up, vacancy rates are stabilizing, and demand is rising. This could mean higher rents for landlords in 2025! 📈🏢 #RealEstateTrends #ApartmentMarket #Landlords #RentIncrease #HousingMarket #PropertyInvestment #RealEstateNews #MarketShift #2025Forecast https://lnkd.in/gzZDP-V2

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.

The biggest apartment construction boom in four decades flooded the market with new supply over the past two years. Apartment owners had to contend with a surge in empty units. That is starting to change. The vacancy rate, or the share of apartment units that are empty, stopped rising for the first time in three years last quarter, as demand for apartments rose to its highest levels since 2021, according to CoStar. If that demand is sustained, landlords likely will have more pricing power starting sometime next year.

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

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

🏗️ Struggling Apartment Developers Face Delays Amidst Booming Construction Market 🏢 🔍 Read the full article: https://lnkd.in/e9Wp_Jif 📈 Apartment builders nationwide are grappling with delays and financial hurdles. Rising interest rates, escalating construction costs, and stagnant rents have rendered many projects unviable. From Worcester to Boise, developers are reevaluating strategies and seeking new partnerships to move forward. But why is this happening, and what's next for the apartment construction market? Let's dive in! 💡 🤔 Why the Delay? - Interest Rates Surge: With banks tightening commercial real estate (CRE) lending, securing funding has become a challenge. Investors, wary of changing market dynamics, are adopting a risk-averse approach. - Supply Surge: Almost 500,000 new apartments flooded the market in 2023—the highest figure in 40 years. Analysts expect a similar influx this year, flooding the market with fresh supply. - Profit Margins Squeeze: Higher interest rates and construction expenses mean that, in many cases, waiting makes more sense than proceeding. 🌟 Creative Solutions: To salvage stalled projects, developers are exploring alternative funding sources and repurposing developments for affordable housing. Their adaptability will shape the future of apartment construction. 👉 What's your outlook for the apartment construction market in the next 12 months? Share your thoughts! 🏗️📆 #RealEstate #ConstructionBoom #AffordableHousing #MarketTrends

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."