By Leah Draffen | Multifamily Executive
Less access to development capital has been the leading factor in the slowdown of apartment construction, according to Institutional Property Advisors’ (IPA) National Multifamily Construction Report. While the slowdown in building activity was anticipated, activity registered in 2023’s second quarter confirmed the expectation as starts fell to slightly below half the 2021 and 2022 norms.
“As access to development capital across the country diminishes and rent growth slows, multifamily starts are cooling,” states Greg Willett, first vice president and national director, research services at IPA. “Among the 15 markets that account for over half of the nation’s ongoing apartment construction, building starts in the second quarter of 2023 totaled just under half the average volume recorded during the previous two years.”
