As development in the multifamily sector ramps up, analysts are projecting that 2013 will see the largest wave of new apartment supply come online in four years.
This will be the first year since 2009 that the number of new apartment units added to the market will return to historic average levels, according to estimates from commercial real estate research firm CoStar. Luis Mejia, director of multifamily research with CoStar, said he’s expecting a “significant” increase in new supply in the next three years in the more than 50 metro markets covered by his firm. CoStar is projecting that 140,000 new apartment units will be delivered in 2013, with more that 400,000 to come in the next three years.
Mejia attributed the increase to a number of factors, including growing demand among the prime renting demographic. Also, he said developers can easily finance construction loans.
Read more...Multifamily Development Projected to Reach Four-Year High via REIT.com