The apartment market has been in great shape for awhile now–both locally and across the nation–and a new report has the market set to enter a fresh chapter.
When focus first shifted from the permanence of owning a house to the flexibility and freedom of renting a home, developers weren’t entirely prepared. And so for the past few years, as vacancy has continued to drop, new development has been almost nil.
According to the report, which was put out by the CoStar Group, that’s about to change. In fact, construction of new multifamily buildings is set to pick up in 2013. As CoStar puts it, new development will be a “new phase of the ongoing recovery of the US apartment market.”
Clearly, Americans are continuing to prefer renting to the hassles of purchasing a home; as new construction moves forward, the apartment supply can begin to align itself a little more with our nation’s high level of demand.
While new construction will be increasing throughout the next several years, it should be seen in perspective. 60,000 units are expected to be added this year–according to BlueStar’s Andy Cohen, that’s “well below the long-term average.” With between 100,000 and 130,000 units estimated to be added each year through 2015, the growth in supply should be “moderate, a rate expected to achieve equilibrium between supply and demand.”
Check out the full report here for even more info and stats. And speaking of new construction, have you heard about the 40-story apartment tower planned near the Paramount Theater downtown? Looks like we know where 1,400 of those planned new units will be…