The apartment industry is facing arguably the most difficult operating environment in the postwar era. Renter vacancy rates are at record levels whether measured across all apartments (5+ units) or only investment-grade, and whether the data comes from government sources or private data providers. Yet there is a broad consensus that as early as 2011 today’s insufficient demand will be replaced by a supply shortage. Construction of market-rate apartments has all but shut down because of scarce construction financing and the current oversupply. Once job growth returns, demographic and household formation trends will kick in. But is the existing oversupply too large for demographic demand to work off quickly?
Weigh in on the topic, or get more information
here
.
