According to the Wall Street Journal (reposted on Realtor.com), rising construction costs and a tight labor market are slowing a nearly decade long apartment boom, which analysts say is easing a burgeoning glut at the top end of the market that has been forming across the country. Data show that multifamily building permits have fallen each month since March, which experts suggest is a sign that there could be less new apartment construction over the next two years – which is the normal time to build an apartment property.
“It appears we’re beginning to see some early signs of relief in supply, as both permits and starts have been declining in our markets for most of the year,” Timothy Naughton, chief executive of apartment developer AvalonBay Communities Inc., told analysts on a conference call last month.
wsj.com
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