Risks to Apartment Overbuilding Averted, For Now says ReisReports

In a piece just out today ReisReports says that new apartment starts have been postponed to 2014 by many developers.

The “bubble” now shows up in 2014, but if economic growth ramps up, then additional supply will most likely be absorbed relatively painlessly.

But not all Metros escape. The report mentions Washington DC and suburban Maryland as two of those who will still see large increases in supply next year.

US Apartment Market moves big supply increase to 2014

Interestingly they name Seattle as a market that should be able to absorb the new supply coming because of large tech job growth. But.. between now and 2017 there are 36,000 units just delivered, under construction or in the pipeline there; that’s going to be a lot to swallow without getting very aggressive on rents and concessions. How will it play out? Do you have a tenant retention plan for your properties?

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