Good News For Apartment Owners

Good News For Apartment Owners

Good News for Apartment Owners; new statistics published by The Commerce Department in Washington show that multifamily construction has dropped over 46% for the year (90,000 units) and nearly 23 % in March alone. The translation: it is not getting easier or more affordable to develop multifamily housing.

New construction permits for multifamily had dropped 19.9%, totaling 121,000 units. These statistics show that at present, the number of multi-family projects under development are the lowest going back half a century. In light of our economy, where concessions are key and rents are on the decline, it is good to know that it is not getting any easier to build or develop new product type. For the time being, we are not competing for renters with any new projects coming online.

On the contrary, we as investors might be in the market to acquire some of the development sites that have met their demise.