Developers plan to start construction on fewer new apartments this year.
“We believe 2015 was the peak for this cycle,” says Ron Witten, founder of apartment research firm Witten Advisors, based in Dallas.
Developers increased the number of new apartment starts every year since the recovery began. But now, the number of new apartments may have finally caught up with the number of new renters who need these units. The percentage of vacant apartments has begun to creep upwards, though it’s still well under 5.0 percent on average in the U.S., according to most apartment researchers. Lenders are also much less willing to provide capital for new development.
Read more...Apartment Asset Development Slows
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