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National glut of apartments


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2018 May 22, 9:19pm   1,988 views  6 comments

by Patrick   ➕follow (55)   💰tip   ignore  

http://www.nreionline.com/multifamily/apartment-market-weathers-storm-new-supply

Apartment landlords can no longer raise rents like they used to. So many new apartment units are opening that the percentage that vacancy is inching higher across the country.

This year “will likely remain challenging for many landlords and apartment investors," says Victor Calanog, chief economist and senior vice president in the New York City office of data firm Reis Inc. ...

All the new development is putting stress on the apartment sector. "Vacancies have been rising since late 2016 as a veritable avalanche of new supply (a record high for some areas) works as a counterbalancing force," says Calanog.


In spite of the overbuilding and declining rents, the article seems desperate to say that the apartment market is "strong". In fact, it uses the word "strong" eight times in the article, as if repetition creates truth.

Comments 1 - 6 of 6        Search these comments

1   RWSGFY   2018 May 22, 9:29pm  

Patrick says
In spite of the overbuilding


Whoa, whoa! Slow down a bit! How did we get from cries of "we're not building any housing" to "overbuilding" and "glut" so fast?
2   just_passing_through   2018 May 22, 9:31pm  

There are a ton of brand spanking new huge apartment complexes near my rental houses in San Antonio. The parking lots are almost empty.
3   everything   2018 May 23, 8:43am  

They've been building allot in my city as well, I mean really allot. More said luxury with tile and laminate, thin floors, etc. which I've been in and have not been impressed, higher ceilings sometimes. Some more solid, like concrete patios, but we all know what happens to concrete, it blows out and cracks, once the cracks come, the rebar rusts, and it blows out even worse. Rents seem ridiculously high in the city. Country, or rural, that's different.
4   Tenpoundbass   2018 Jun 27, 5:53pm  

We need 20 Major Cities!
5   Strategist   2018 Jun 27, 8:16pm  

Feux Follets says
Commercial/Multifamily Debt Growth Largest Since Recession

Multifamily and commercial mortgage debt grew by $44.3 billion in the first quarter of 2018, a quarter-over-quarter increase of 1.4 percent, and the largest gain since before the Great Recession. The total debt at the end of the quarter was $3.21 trillion with the multifamily portion increasing by 19.3 billion or 1.5 percent. It was the third straight quarter that overall debt grew, the first time that has occurred since 2007.


That's a good sign. It indicates we are finally recovering from the Great Recession. Increased borrowing, higher economic activity, higher GDP, good employment numbers, all go hand in hand.
6   Patrick   2018 Jun 27, 9:40pm  

There is overbuilding, just not in the places where the jobs are, like the SF Bay Area.

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