Institutional Property Advisors Releases National Multifamily Construction Report
September 07 2023 - 1:45PM
Business Wire
Institutional Property Advisors (IPA), a division of Marcus
& Millichap (NYSE:MMI), published a new national report,
Pullback in Multifamily Construction Starts.
“As access to development capital across the country diminishes
and rent growth slows, multifamily starts are cooling,” stated Greg
Willett, first vice president and national director, research
services, IPA. “Among the 15 markets that account for over half of
the nation’s ongoing apartment construction, building starts in the
second quarter of 2023 totaled just under half the average volume
recorded during the previous two years.”
Pullback in Multifamily Construction Starts research report
provides investors with the latest apartment construction research
and analysis, including key findings such as:
- The largest declines are in Texas, with second quarter 2023
project initiations in Houston, Austin and Dallas-Fort Worth at
less than one-third the earlier volume. Slowdowns are also
pronounced in Philadelphia, Denver, and Washington, D.C.
- Pullbacks in new construction that mirror the average for the
15 markets under study are in Los Angeles at 52%, Seattle at 51%
and Atlanta at 50%.
- Markets where the pullback in construction is somewhat slower
to materialize are in Florida and the Carolinas. Raleigh-Durham is
the single location in the analysis where apartment construction
starts in Q2 2023 remained in line with the volume recorded in
early 2021 through early 2023.
- Given that the typical apartment property takes 18 to 24 months
to complete, delivery volumes should begin to wane in early 2025
and then drop notably during the last half of the year.
“Rent growth is likely to regain momentum as early as spring
2024, when the normal seasonal upturn in leasing velocity should
coincide with obvious signs that today’s new supply excess is
temporary,” added John Sebree, senior vice president and national
director of the firm’s Multi Housing Division. “Price increases
should prove robust during 2025.”
Access IPA’s complete Pullback in Multifamily Construction
Starts report here.
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus
& Millichap (NYSE: MMI), a leading commercial real estate
services firm in North America. IPA’s combination of real estate
investment and capital markets expertise, industry-leading
technology, and acclaimed research offer customized solutions for
the acquisition, disposition and financing of institutional
properties and portfolios. For more information, please visit
www.institutionalpropertyadvisors.com
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm
specializing in commercial real estate investment sales, financing,
research and advisory services with offices throughout the United
States and Canada. As of December 31, 2022, the company had 1,904
investment sales and financing professionals in 81 offices who
provide investment brokerage and financing services to sellers and
buyers of commercial real estate. The company also offers market
research, consulting and advisory services to clients. Marcus &
Millichap closed 12,272 transactions in 2022, with a sales volume
of approximately $86.3 billion. For additional information, please
visit www.MarcusMillichap.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230907802282/en/
Gina Relva, VP of Public Relations
Gina.Relva@marcusmillichap.com
Marcus and Millichap (NYSE:MMI)
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