A gradual shift in the American Dream from homeownership to renting has some U.S. developers of multifamily housing and real estate market analysts (like the CoStar Group) worried over a threat of overbuilding. The concern is that the rapid increase in rental demand will eventually (and soon) dwindle, leaving a plentitude of “sitting empty” apartments and apartment buildings.
Others though — like the market researchers who attended the annual National Multi Housing Council meeting earlier this year — contend that as a whole, the industry remains safe from being over saturated with building.
“While the pipeline in some markets is at worryingly high levels (see Which Markets are at Most Risk of OverDevelopment? below), the national supply is within normal levels,” said Bendix Anderson of National Real Estate Investor.
Mark Obrinsky of the National Multifamily Housing Council (NMHC), also doesn’t believe we are overbuilding multifamily. “The rebound in the single-family home market doesn’t mean that the multifamily market is overbuilt, Obrinsky said.
Read more...Are we Overbuilding Multifamily? - Multifamily Blogs