Multifamily Rents Poised For Robust Increases Further Ahead

The apartment construction craze over the past few years helped temper rents slightly, but a new report warns that housing starts in key markets are sputtering. Signs point to higher costs ahead starting as soon as spring 2024 and a spike in prices by 2025. With demand still soaring, why are builders pulling back? As banks held capital more tightly and operational costs soared, Q2 in 2023 saw less multifamily development. Although a million units are in the pipeline across the U.S., half are in 15 markets and starts have plunged in Texas. Phoenix still ranks among the most robust cities for new housing, but it’s starting to slow as well.

Source: https://www.globest.com/2023/09/11/multifamily-rents-poised-for-robust-increases-further-ahead/