“This year will witness the largest tide of new multifamily deliveries in at least a half century. Some 520,000 new rental housing units are anticipated this year, and another 900,000 are in the development stages. These numbers come on the heels of last year’s output of 438,500 new units, the largest one-year number since 1987.
Supply and demand being the forces they are, this new-unit tsunami is expected to help improve affordability and tap the brakes on rent growth.
At the same time, it’s created a zest among property owners for differentiating their multifamily properties from others. Distinction may be netted via exclusive amenity offerings, by showcasing environments appealing to specific demographics or simply through unique geographic qualities. The quest for differentiation is particularly acute in high-growth metropolitan areas, such as New York City, Dallas-Fort Worth, Houston, Atlanta and Austin, where most of the new product is concentrated. It’s also being felt most notably on the upper end of the price spectrum.”
