The apartment boom is eventually coming to an end; it’s only a question of when. An increase in deliveries and a cooling off or stabilizing of purchases by REITs are a couple of the reasons why this property type will see a correction in pricing.
New construction is starting to roll in and Exhibit 1 below reveals what the tip of the iceberg looks like. The grey bars show that sales of apartment buildings aged two years or less spiked dramatically in 2012, and that 2013 apartment sales will almost undoubtedly end up passing that.
Read more...The Beginning of the End for the Apartment Pricing Boom - CoStar Group
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