Is Phoenix apartment building investment overheating already?
My exec sum from the Apartment Finance Today* article Apartments Rising in Phoenix Again
At a Seattle apartment building investment conference recently one of the main speakers was saying that everyone who’d ever held a hammer, and their brother, was trying to build apartments in that market. That really struck a nerve in my market cycle conscious brain and was looking to get some perspective on that when a CBRE piece crossed my desk with this chart on it:
So while new unit construction starts are up significantly from the 2009 lows they are still well below the 89-08 average of about 250k. More importantly in relation to demographics we will be seeing increasing demand from growth in two of the prime renter groups, my exec sum from the piece below: Continue reading Are we overbuilding multifamily already? Or just the wrong kind? Research from CBRE Econometrics