Apartment Markets Survive New Construction, So Far
The cities where developers are opening the most new apartments are handling the new supply pretty well, at least for now.
“Looking at rent growth performances, there’s really only one spot [major metro apartment market] that is having trouble digesting new supply,” says Greg Willett, chief economist for RealPage Inc. “That’s Houston.”
But developers aren’t finished. Even as they race through an incredibly busy year for new construction, apartment developers are now planning even more new projects. They still often choose to start construction in the same cities and the same submarkets within those cities where they have been busy building since 2010. “We’re tending to continue to build most heavily in the same spots,” says Willett.
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May 10, 2017
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