After years of healthy demand for new apartment units, development activity has ramped up. Nationally, roughly 355,000 new units were under way at the end of 2014’s 2nd quarter. But what does this figure tell us, besides that there’s been a lot of brick and mortar flying around?
Rather than focus on traditional metrics such as inventory expansion as a percentage of existing stock, MPF Research will explore construction levels in terms of future supply relative to recent demand trends. In this article, the first in our four-part series, we looked at the number of units under construction in a given market at the end of 2nd quarter 2014 relative to the average annual absorption during the previous three years. It should be noted, however, that this point-in-time analysis alone is not intended as a predictor of the amount of time it will take a market to absorb all of the units under construction.
Read more...Exploring Supply and Demand | Property Management Insider
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