DENVER—Call the near-term outlook for apartments a mix of goodnews and not-so-good news. The good news, as Integra RealtyResources puts it in its 2017 Annual Multifamily Report: “with theexception of a few high-end markets that have gotten over theirskis in the past year or two, the displacement of demand from thesingle-family ownership market to the multifamily residentialmarket is making the rental apartment sector by far the stronger ofthe housing market segments.”
There's a hint of the not-so-good news in that sentence: thosemarkets that have gotten in over their skis. Or, as IRR consultingeconomist Hugh F. Kelly puts it in the new report, “Ten percent ofUS markets are already in hypersupply, where new construction isgetting ahead of sustainable demand.”
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
