Examined in the initial two parts of this national apartment construction analysis, total building activity in the U.S. remains reasonably tame for the most part, and there are reasons to think we won’t push new supply drastically beyond absorption capabilities in the near term.
Still, there are individual metros and particularly specific neighborhoods where development activity is getting fairly aggressive. Those areas could see occupancy backtrack a bit over the near term. And, even if that’s not the case, considerable product moving through the initial lease-up process likely will have a cooling effect on the rent growth trend.
Listed below, four of the nation’s major metros – defined as those with at least 100,000 apartment units – register ongoing construction that will grow their total stocks by 3 to 4 percent.
Read more...Apartment Market Trends: What Spots Are Vulnerable to Overbuilding? | Property Management Insider