Connect Midwest: Multifamily Adaptive & Reuse Trends – Chicago June 13

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Say Buh-Bye to Luxury Apartment Boom

For seven years, most metropolitan areas experienced an apartment boom characterized by increasing rents and a lot of deliveries. Demand for urban rental properties kept up with the number of units coming to market.

But signs are clear that this is coming to an end. Negative rent growth during Q4 2016 in markets including Houston, New York and the San Francisco Bay Area led to rent moderation at the end of 2016, according to apartment research firm Axiometrics. And landlords are going to slash rents and offer deeper concessions in 2017.

The slowdown is because of high supply, said to MPF Research’s Jay Parsons. Though more than 50,000 new units were rented in Q4 2016, 88,000 units delivered, the most since the mid-1980s, according to MPF metrics. Meanwhile, Axiometrics is forecasting that 378,000 new units will come to market in 2017, almost 35% more than the 20-year average.

For comments, questions or concerns, please contact Amy Sorter


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About Mark El-Rayes

Mark El-Rayes is an award winning designer and photographer from Beirut, Lebanon. El-Rayes has over 15 years in the design industry, 5 years of which he served as a Mass Communication Specialist in the United States Navy at Naval Air Station North Island, Navy Public Affairs Support Element - West (NPASE). El-Rayes is a full-stack developer, seo specialist, photographer, and artist.

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