Introduction
Multifamily units are booming in the U.S. and according to experts, this isn’t going to change anytime soon. According to Richard Zahn, that’s good news for landlords but bad news for renters who could see their rent prices go down in the near future.
While a boom seems to be good news, many are worried that the pace that multifamily projects are being built at is unsustainable.
While a boom seems to be good news, many are worried that the pace that multifamily projects are being built at is unsustainable. As more people move into large cities, there will need to be more housing created. This means that developers will have to build fast enough to keep up with demand.
While it’s great that there’s a huge demand for apartments in LA right now, any type of oversupply can lead to problems down the road as units sit empty and buildings wait for tenants who never arrive or cannot afford them if they do come along.
The question is: how long can this boom last?
One of the reasons this is such a concern is that across the country, the number of apartments available for rent is slowly outgrowing the number of demand.
One of the reasons this is such a concern is that across the country, rental vacancy rates are at an historic low. This means that more and more people are renting apartments than ever before. The number of units available for rent is slowly outgrowing the number of demand.
This can be problematic because it is unsustainable—there aren’t enough units to go around and supply is not keeping up with demand. If there’s no new construction, then prices will start going up as landlords try to make up for lost revenue from tenants moving out or subletting their apartment (which they should not do).
Experts say that if this trend continues, rent prices are going to drop as there are fewer renters looking for units and more units becoming available.
Experts say that if this trend continues, rent prices are going to drop as there are fewer renters looking for units and more units becoming available.
This is a concern because it can lead to a slowdown in the economy. It is important to note that this is only a trend, not a fact.
Multifamily Units Are Expected to Increase by 45% in the Next 10 Years
It’s no secret that single-family homebuilding has slowed down dramatically. In fact, according to FindTheHome, the number of single-family homes under construction has fallen by 82%. But what about multifamily housing?
Multifamily units are expected to increase by 45% in the next 10 years, and with demand outstripping supply, rent prices are expected to drop as there are fewer renters looking for units and more units becoming available. This is a concern because it’s unsustainable—the more affordable these properties become, the less incentive you have as an investor or developer to build new ones.
Conclusion
In the end, it’s important to remember that while the multifamily boom is good news for developers and investors, it also has its risks. If demand continues to increase at an unsustainable pace, rent prices could start dropping as there are fewer renters looking for units and more units becoming available. This can be especially dangerous if you have just invested in a project or development company that builds apartments.
