True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

UWM has a plan to win a war of mortgage attrition

UWM's margins will fall all the way down to 75 to 110 bps. Mat Ishbia says it's the perfect environment to prove that his mortgage firm is truly elite.

Don’t sleep on non-QM products

Now is the perfect time for originators to consider expanding to non-QM products – to grow business, diversify their offerings and to ensure an opportunity to better serve their customers.

Real Estate

Apartment construction is slowing down, even as occupancy reaches an all-time high

Cost of rent is up, too

Although multifamily occupancy rates keep climbing, with apartment occupancy rates in July reaching the highest level since 2000, multifamily construction is slowing.

Many major markets have seen a slow down in multifamily construction growth – slowing to the lowest level it’s been in almost four years, according to a new report from RealPage.

There were nearly 526,300 units underway at the end of June, down 5.5% year over year and the fewest since the third quarter of 2015. 

Although apartment construction saw a boom last year, it is expected to continue to decline. 

After slumping down to 110,311 units built in 2011, construction made its way up to 331,765 in 2017. Now, it’s slowly on the decline again. 

apartment construction

RealPage said that level of construction is still far above what’s normal for the U.S. market, almost doubled the long-term norm. Multifamily permits also dropped in June to its lowest level in over two years, according to the Bureau of Labor Statistics

New York’s market has seen the biggest slow down, with 42.8% fewer apartments being built than the year before. Some of the reasons behind the slow down is high construction costs and lack of skilled labor, RentCafe reports

Despite the projected slowing down of construction, there are some metros expected to see more building than others. 

The Dallas-Fort Worth metro area has seen the most apartment growth, with a total of 22,196 multifamily units expected to be built in 2019. Trailing DFW is Seattle, expecting 13,682 units to be built this year. 

Cost of rent is also slowing down after picking up speed the last few years, dropping from 3.7% in 2018 to 2.7% in 2019.

Most Popular Articles

How appraisers value homes in a hot housing market

How do appraisers value a home in a market where prices are escalating rapidly – and where nearly two-thirds of listed homes faced bidding wars in March? HW+ Premium Content

May 13, 2021 By

Latest Articles

Foreclosures down in April as moratorium continues

RealtyTrac and ATTOM Data Solutions found the number of properties with foreclosure filings in April are down 1% month over month and 17% year over year.

May 14, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please