Rental apartment construction booms in sellers’ markets — and NYC

TRD New York /
Jul.July 16, 2012 01:30 PM

Multi-family housing developers have benefitted from the recession and a tight lending climate, but rentals are often being constructed in areas with strong seller’s markets, according to apartment pipeline data from Axiometrics cited by the Wall Street Journal.

Areas with a true seller’s market – cities like San Jose, Calif., San Francisco, Austin and Phoenix – are seeing a surge in multi-family development because buyers are willing to rent while they wait for a more advantageous market. 

In cities with a buyer’s market – such as Cincinnati, Cleveland, Providence, Jacksonville and Hartford, Conn. – multi-family developers are scared off by competition from the single-family housing market.

The trend runs against the conventional wisdom that rental apartments become more desirable in weaker housing markets.

However, New York City may be the most significant exception to this trend. Zillow rates New York as the country’s fourth strongest buyer’s market, yet multi-family construction is proliferating. There are some 111 new rental developments, containing approximately 40,000 apartments planned for the next few years, according to Axiometrics data, and Manhattan rents continue to rise[WSJ]


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Shawn Mobley (left), is being replaced by Andrew McDonald (right) as CEO of the Americas at Cushman

Shakeup at Cushman: Mobley out, McDonald promoted

Shakeup at Cushman: Mobley out, McDonald promoted
1118 Grand Concourse in the Bronx (Google Maps, iStock)

Landlords can now file evictions, but proceedings remain on hold

Landlords can now file evictions, but proceedings remain on hold
4 Times Square (Google Maps, TikTok)

What happens if Trump banishes TikTok, savior of NYC’s office market?

What happens if Trump banishes TikTok, savior of NYC’s office market?
(iStock)

Pandemic slammed brakes on nearly half of would-be homebuyers: Survey

Pandemic slammed brakes on nearly half of would-be homebuyers: Survey
(iStock)

To survive, NYC retailers are treating average Joe’s like they’re rich

To survive, NYC retailers are treating average Joe’s like they’re rich
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...