Although the multifamily pipeline remains robust for now, developers and lenders are becoming more selective as the cycle matures.
By Mallory Bulman | MHN Multihousing News
The multifamily building boom isn’t coming to an end just yet. Fannie Mae researchers estimated in March that some 404,000 new units are slated for delivery in 2017, 61,000 more than came on line just a year ago. Moreover, 17 of the top 25 developers as ranked by the National Multifamily Housing Council started more new units in 2016 than they did in 2015.
But although development continues to thrive in some markets, particularly urban core locations, signs of a slowdown are unmistakable. “Looking across the country, we expect overall apartment starts in 2017 to be down 25 to 35 percent versus last year, with a particular drop-off in the second half of 2017,” reported John Gray, head of investments for LMC, the multifamily development affiliate of Lennar Corp.