Search
 
Commentary

Luxury Loses in Otherwise Positive Multifamily Market

JERSEY CITY, NJ—High-end supply now outpaces demand in many markets, writes Altus Group’s Chuck DiRocco in this EXCLUSIVE commentary.

By Chuck DiRocco | Updated on February 27, 2017
Chuck DiRocco of Altus Group “Millennials crave a community that’s more easily provided in multifamily units,” writes DiRocco.

JERSEY CITY, NJ—Post-recession, apartment real estate has been the sector to watch as rents escalated and development was relatively controlled. Entering 2017, the industry buzz revolves around overdevelopment within certain markets and classes, and rents beginning to show declines. Nonetheless, interest in the US rental market is expected to continue to increase over the next few years.

Both trends are positive for potential tenants, thus making the home purchase less attractive. Combined with creeping interest rates and mounting debt, renting looks to become more prevalent as the “American Dream” of homeownership possibly becomes even more remote than ever for many.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

GlobeSt. Multifamily Fall 2024Event

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.