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Multifamily Development Upsizes on Height, Unit Counts
More new rental apartments are coming to the market than at any time since the 1980s, and one reason is a proliferation of bigger and taller multifamily buildings, reported the Wall Street Journal. Developers have seized on the willingness of some local officials to relax zoning and other laws and institutional investors to bet on smaller cities, enabling projects to go bigger than ever before.
U.S. cities added more than 2,900 buildings with more than 200 apartment units between 2021 and 2023, or 17% more than were built from 2018 to 2020, the WSJ reported. It also outpaced the increase in the number of smaller properties of at least 50 units, reported the WSJ, citing data from Yardi.
The bigger approach to multifamily development reflects the evolving economics of the business and the dynamics of the current housing market, according to the WSJ. Rising construction and other costs mean that developers often need to build more units to be profitable, and lack of available land is also causing taller buildings to rise.
Moreover, although many of the current highrises were planned when rent growth was faster than it is now, record pricing and limited inventory of for-sale housing mean renting still appeals to many.
Industry leaders and power players are connecting at Connect Phoenix Multifamily & Single-Family Build-to-Rent on April 18 at the Westin Kierland Resort & Spa. Don’t miss the expert’s take on where the market is headed, and what changes are on the horizon. Register Now!
- ◦Development
