They continue to claw the dirt even in the face of what is apparent to many. So, I’ll say it again, as clear as I can:
Demand for umpteen new apartment complexes per submarket is pretty close to darn near almost kinda met.
Supply has met demand with rent increases flattening in the hottest markets across the U.S. such as Seattle, Portland, Austin, DC, Atlanta, Denver, and San Jose.
But the big yellow (and green and red) site graders continue to scratch out new locations for the multifamily industry’s long awaited and perfectly conceived luxury lifestyle concept. Oh… I forgot to add that the singular best concept is (of course) both sustainable and somehow collaborative, because it just wouldn’t be the 2000-teens otherwise.
This is about the upscale end of the multifamily sector, not the more affordable rental units which are expected to remain in demand. It isn’t often you can so clearly see a market sector overdevelop and predict the consequences to occupancy and rental rates.
Except if you are in Kansas City, or Columbus, or Cupertino. These markets are pretty interesting and it is no surprise tech is a big part of it. Part 2 will discuss those three markets in more detail.