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Delays On Apartment Projects Keep Vacancies Low, For Now

May 18, 2017

Construction delays for multifamily projects are helping to keep vacancies low and overall performance positive with vacancies holding at a steady 5%. In a recent analysis conducted by Axiometrics between 27%- 43.4% of multi-housing projects that were started in 2014 had reached the ground-breaking stages in 2017 for gateway cities such as New York and SanFrancisco. Meanwhile, cities such as Charlotte and Dallas have seen completion for nearly all projects that were started in 2014. Cause for delay is due to the fact that locations where developers are most eager to build involve sites with pre-existing structures or barriers, translating into a lengthier zoning and approval process. In addition, due to the length of the currenct cycle only a small number of legacy sites yet remain from the last economic downturn.

Delays On Apartment Projects Keep Vacancies Low, For Now