The pandemic has halted many apartment projects in their tracks—but a recent report from John Burns Real Estate Consulting says that there are still opportunities to build new apartment properties in both urban and suburban markets. The caveat according to the firm: It depends on the timing.
The two biggest multifamily segments in high demand are short-term rentals—which John Burns defines as one-to-two-year lease terms—that can serve residents looking for work-from-home space and outdoor access. John Burns believes these opportunities will be most available in suburban markets. Renters are seeking larger units in these areas, usually two-to-three bedrooms apartments. These renters are less concerned density, walkability and access to amenities, particularly as many restaurants, retailers and bars are shuttered. The report highlights Uptown Charlotte as an example. The market has seen the highest concessions in the MSA, while the further out suburbs like Iredell and Gaston County have seen little to no concessions. John Burns expects the trend of suburban apartment growth to continue.