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Apartment Construction Poised for Slowdown
With COVID-19 further complicating an already visible slowdown in apartment construction since its 2018 peak, new completions across the country are starting to mirror the downward trend following the 2008 crisis, RentCafe reports, citing Yardi Matrix data. This year is expected to yield 283,114 completed apartments, a significant drop of 12% compared to 2019.
The downtrend is mainly due to the slower pace of construction, as a result of a shortage of available construction crews, funding and permits, along with some temporary bans on construction projects in certain states, says RentCafe. More than 50% of developers have reported construction delays due to the pandemic.
The Dallas-Fort Worth area is first in terms of apartment construction, set to complete 19,318 new units by the end of 2020. In second place is the New York City metro area, with 15,952 new apartments expected to come on line this year.
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