Apartment Completion Hit a Two-Decade High

[Jorge Abreu]

💥In the second half of 2020 and the first half of 2021, roughly 363,000 rentals were delivered. Marcus & Millichap says this was the largest completion volume over a four-quarter stretch in at least two decades.

The deliveries weren’t uniform throughout the nation. In fact, almost one-third of US deliveries were in seven metros, each of which gained more than 10,000 units.

Two metros exceeded the 20,000-unit threshold. 👉Dallas-Fort Worth led the way, adding 27,700 apartments. 👉Houston was next with 20,200 new apartments. Another Texas market, Austin, also added more than 10,000 units. Other Sunbelt markets, including Atlanta, Phoenix, and Charlotte, also added markets at a fast clip.

The national vacancy rate in central business districts peaked at 6.3% at the end of last year but has since settled to 5.2% in June 2021, according to Marcus & Millichap. While that rate is down ten basis points year over year, it is still 100 basis points higher than it was in 2019.

👉Are looking to build any #Multifamily properties?

[Bruce Lynn]

I see a lot of these big guys offering no deposit and 2 months free rent.  How do you think this will trickle down to the B and C class deals?   Does it matter?   Or does this just affect the A class where tenants might be moving between A class places to get better rent deal?    Do tenants who are looking at C and B type properties, think....wow 2months free rent, I can move up to a better place...or do you think people tend to stay in their lanes?