he industry’s comeback after the Great Recession has set new records for development and rent growth, but it appears some development markets are finally moderating. The past year saw 337,000 units arrive to the market, on top of the 267,000 units delivered in 2015. For the coming year, things will temper (even if just a bit) with an expected 272,000 deliveries, according to MPF Research, the analytics arm of RealPage.
A more stringent construction debt market will also curb the delivery of new apartments into the future. John Gray is head of investments for Lennar Multifamily Communities (LMC), which started 4,565 units in 2015 ranking fifth on the NMHC’s list of largest apartment builders, says its production will drop 30% to 35% in the next year. And, he expects other major apartment builders to see similar decreases. “Everybody is anticipating starting between 50% to 65% as many units in 2017 as they did in 2016,” he says.
Read more...Top Markets for Expected Deliveries in 2017 | Multifamily Executive Magazine