Many experts believed that the rental apartment sector (in several cities across the United States) was completely oversaturated just a few months ago, saying that there were not enough houses or flats to accommodate the large amounts of citizens able and ready to close deals in the shortest time possible.
Surprisingly, recent data has shown that this phenomenon does not seem to stop, in fact, it is increasing in size, a constant growth that has been described as “unexpected” and “interesting to watch”, according to specialists in the field.
The United States Census concluded that the apartment absorption rate has been at its peak since 2017, all because the construction industry has been extremely active over the last 5 years, reaching a two-decades high two years ago. Some argued that this demand would be negatively affected as many young people began to buy their first homes.
Homeownership seems to be a little far from the expectations of renters nationwide, this is something that John Pawlowski has been confirming actively in the press, he’s a residential expert at Green Street Advisors, conducting a series of research works in the area, he’s one of the many surprised advisors with the “better than expected demand” for rent that is reacting strongly to an elevated supply of new housing projects.
There has been a strong increase in the production of apartment-like buildings in 2017 and that will continue well into 2018 according to Barbara Denham, an economist working at data-driven consulting firm Reis.
Taking into consideration last year’s new tax reform, and the recent stock market behavior, it is expected that the incentive to buy new homes is going to decline, but this can be something positive for the renting market, widely known as a short-term solution for those looking for a place to call home.