“You can start to see where new supply is coming online, you see starker and stronger rent decreases.”įederal statistics, which don’t track active construction below the regional level, show that construction hasn’t been higher in the Northeast since 1987 or in the Midwest since 2005, and it’s at all-time highs in both the West and South. It’s more common now to be building 50 or more units,” he said. “You’ve had this huge rush to build apartments in the last couple of years, and projects are bigger and bigger. Vacancy rates are rising, said Alexander Hermann, a research associate at the Joint Center for Housing Studies at Harvard University. Meanwhile, the typical annual rent increase nationally fell to zero in June for the first time since the pandemic began, after peaking at 17.8% in 2021, according to Apartment List, a rent information aggregator and research firm. This year, the number was even higher – almost 1.7 million in September. More than 1.65 million housing units were under construction last year, the highest annual number since federal record-keeping started in 1969. NEW YORK – An unprecedented surge in the nationwide construction of new housing – mostly apartments – may be making a dent in fast-rising rents that have been making life harder for tenants.
Florida Realtors Board Certified Professionals.
