By Joshua Ayers | MHN Online
Apartment completions in the nation’s top 100 metros reached the highest levels in 14 years in the third quarter at 66,813 units, and pushed the annual completion total so far to 226,615 units—also a 14-year high—according to information released by MPF Research.
“The wave of new supply coming for the past year or two now is beginning to crest,” says Greg Willett, MPF vice president. “The timing looks right for this cycle, as the job production needed to stimulate household formation also has gained some momentum this year.”
The volume of completions did not outpace demand for new supply, as third quarter demand finished well-above completion levels at 78,971. Annual demand is hovering just below 255,000 units, and with 387,397 units currently under construction, Q4 completions are anticipated to deliver about 90,000 units, which will put the total annual completions somewhere near 258,000 units.
