Early Warning for Multifamily: Growth May Be Too Much of a Good Thing via NREIonline

The real estate analysts at the CoStar Group worry that the continuing growth in multifamily development may be too much of a good thing.

“Apartment construction has been on a tear in certain markets,” reads the latest CoStar report. “With the inventory growing at more than four or five times the national rate, vacancies will most likely increase.”

CoStar has picked out the apartment markets with the highest levels of construction currently underway compared the existing inventory of apartments. Raleigh, N.C., is at the top of the list, followed by two Texan cities: San Antonio and Austin. In all three of these cities, the number of apartments underway is more than 5 percent of the total existing inventory.

Read more...Early Warning for Multifamily: Growth May Be Too Much of a Good Thing via NREIonline