The National Association of Home Builders is forecasting an increase in multifamily construction in 2014, but a few hot markets, such as Texas, need to be monitored to make sure an oversupply is not developed.
“The multifamily market has come a long way since the collapse,” said panelist Guy K. Hays, president of Legacy Partners Residential Inc. in Foster City, Calif. “Overall, supply and demand are in balance, and in most markets there is a need for the continued production of new units.”
Hays, a panelist speaking at the NAHB’s International Builders Show in Las Vegas, said financing for new apartment projects in Houston has become more difficult to obtain recently because lenders are aware that the Texas city has seen a large number of new units open in the last two years. Also, downtown Seattle should be on the overbuilding watch-list, Hays said, although the industry is a long way from a overbuilding problem situation anywhere in the nation at this point.
Read more...The Overbuilding Watch List: Texas and Downtown Seattle Should Proceed with Caution While Multifamily Gears up for Big 2014 | Realty News Report
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