Development will play a key role in the U.S. multifamily market in 2018. Developers are poised to register the second-highest annual completions count of this cycle, with as many as 258,000 units delivered. This is based on 62 markets tracked by CBRE Econometric Advisors.
This would be down by 9.2% from 2017’s cycle peak, projected at 284,000. Apartment starts began to slow in 2017, so the multifamily market will get a reprieve from new supply by late 2018 and throughout 2019.
Starts will continue to slow in 2018, as banks have scaled back development lending over the past two years. While other sources of development capital have emerged (e.g., debt funds) or reemerged (e.g., HUD financing), the climate for financing new development should remain more conservative, and debt capital costs more expensive.
For more, download CBRE’s free 2018 Multifamily Outlook report (registration required).
As of December 2017, nearly 23% of all units under construction in U.S. markets are in urban cores. In the long term, urban core multifamily will perform well, but for the short term, market statistics indicate that the best development opportunities are in the suburbs.
Suburban markets have seen the highest rent growth rate over the past two years.
Related Stories
Multifamily Housing | Jul 11, 2021
New fixed-wood closet system for multifamily developments introduced
VUE is a new high-quality, economical fixed-wood shelving system from Organized Living.
Multifamily Housing | Jul 11, 2021
Aluminum railing systems offer ‘versatile styling, easy installation’
Trex Aluminum railing systems offer ‘versatile styling, easy installation,' says the manufacturer.
Daylighting Designs | Jul 9, 2021
New daylighting diffusers come in three shape options
Solatube introduces its newest technology innovation to its commercial product line, the OptiView Shaping Diffusers.
Multifamily Housing | Jul 8, 2021
As homelessness becomes more visible, building shelters presents opportunities to AEC firms
C.W. Driver Companies and XL Construction have just completed transitional housing projects in California.
Multifamily Housing | Jul 7, 2021
Make sure to get your multifamily amenities mix right
One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.
Multifamily Housing | Jun 30, 2021
A post-pandemic ‘new normal’ for apartment buildings
Grimm + Parker’s vision foresees buildings with rentable offices and refrigerated package storage.
Resiliency | Jun 24, 2021
Oceanographer John Englander talks resiliency and buildings [new on HorizonTV]
New on HorizonTV, oceanographer John Englander discusses his latest book, which warns that, regardless of resilience efforts, sea levels will rise by meters in the coming decades. Adaptation, he says, is the key to future building design and construction.
Multifamily Housing | Jun 23, 2021
COVID-19’s impact on multifamily amenities
Multifamily project teams had to scramble to accommodate the overwhelming demand for work-from-home spaces for adults and study spaces for children.
Multifamily Housing | Jun 22, 2021
New apartment community breaks ground in Bethesda
KTGY is designing the project.
Multifamily Housing | Jun 14, 2021
Baccarat Residences Brickell set to rise in Miami
Arquitectonica is designing the project.