Texas Commercial Property Tax Consultants’ Post

🏠 Multifamily Construction Faces Major Slowdown 📉 New multifamily housing starts have plummeted by a staggering 52%, driven by high costs and severe labor shortages. Rising interest rates are adding fuel to the fire, making it tough for developers to kick off new projects. Read more 👉https://bit.ly/3LcBqsB Prefab can be a game-changer, helping to streamline timelines, cut costs, and alleviate labor pressures. #PrefabConstruction #MultifamilyHousing #ConstructionInnovation #Efficiency #CostSavings

Multifamily construction starts have decreased dramatically. 📉 Some would say this is the market correcting the current oversupply, but I think it's a concerning trend going into 2026. According to the Harvard journal, the current "pipeline of units...should help provide new supply in the near term," but the "declining starts could worsen the existing supply shortage." While not all analysts agree on the exact number, everyone agrees that the United States needs MILLIONS of multifamily units to bridge the gap for more affordable housing. This is why DLP Capital has thousands of units under construction that will be delivered to the market in 2026 and 2027, right when the supply will be restricted. And when supply is down, demand is up, which means investment returns go up too. 📈 DLP is poised for an excellent real estate market into the future, and we're excited to see returns stay consistent for our investors. If you are ready to invest in a company that has: ⭕ never missed a preferred return ⭕ never lost a penny of investor principal ⭕ always delivered 10%+ returns Then let's connect! Sources: https://lnkd.in/gbBbuZnB https://lnkd.in/gCVAcjzx

Zachary Streit, J.D. M.S. posted this on X (he's a great follow). Construction costs, interest rates, and long (& convoluted) approval processes have put development in CA in a gridlock. In an already supply constrained market to multifamily construction permits hit a 10 year low is extremely concerning. Digging deeper there is even greater concern for homeownership, as for sale condo development is almost non - existent when compared to "build to rent" construction starts. https://lnkd.in/dY-yG78x

Multifamily Supply Wave Recedes as Construction Stages Retreat The multifamily housing market is currently oversupplied, though improving. In 2024, completions are expected to total 533,000 units, a 10% drop from 2023's 588,000 units. Despite this, Austin, Tampa, and San Antonio will see increased supply, likely raising vacancy rates and keeping rent growth negative. Construction activity has sharply declined, with units under construction dropping from 1.2 million in early 2023 to 860,000 by May 2024. New construction starts have also fallen significantly, from 210,000 units in early 2022 to 63,000 in early 2024. With multifamily developments taking about two years to complete, fewer starts now mean fewer available units in 2026, projected at just 250,000 completions. If demand remains steady, this could quickly shift the market from oversupply to undersupply, lowering vacancy rates and accelerating rent growth, with the market unable to respond quickly enough to the shortage.

The largest multifamily starts of September 2024 After rising 6% in August, overall construction starts fell 6% in September to a seasonally adjusted annual rate of $1.1 trillion, according to the latest monthly starts report from Dodge Construction Network. Residential starts fell 1% last month, down to a seasonally adjusted annual rate of $382 billion, while multifamily starts fell 6%. This year to date through September, residential starts rose 7%, driven by 17% growth...Read More>>> https://buff.ly/40n5nze #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #ApartmentConstruction

The multifamily construction sector is experiencing a notable slowdown in 2024, primarily driven by rising interest rate risks. However, this pause is expected to be temporary, with new construction starts anticipated to pick up again in the fall of 2025. Despite the current slowdown, apartment demand remains robust, fueled by a significant affordability gap that continues to make renting an attractive option for many. In 2024, 440K new units are set to be delivered across the US, representing only 2.5% of the existing inventory. As we navigate these challenges, it's crucial to stay focused on the long-term opportunities within the multifamily market. #MultifamilyRealEstate #ConstructionSlowdown #InterestRates #RealEstateTrends #MarketOutlook #ApartmentDemand #AffordableHousing #RealEstateInvestment #FutureGrowth #InvestmentStrategy #RealEstateDevelopment #HousingMarket #MultifamilyHousing #EconomicTrends #RealEstateOpportunities #MultifamilyRealEstate #CapRates #TreasuryYields #InvestmentStrategy #RealEstateTrends #MarketAnalysis #PropertyValues #RealEstateInvestment #YieldSpread #EconomicTrends #InvestmentOpportunities #RealEstateFinance #MarketDynamics #InvestorSuccess #GrowthOpportunities

U.S. multifamily housing is experiencing a significant pullback in new construction, even as the number of units that began construction in the past two years is expected to reach a 40-year high. While 675,000 units were added this year, construction starts on rental apartments, after peaking in the first quarter of 2022 at 211,000 units, have since plummeted 70% to just 65,000 units starting construction in the third quarter, reflecting a dramatic shift in market dynamics.

The largest multifamily starts of September 2024 After rising 6% in August, overall construction starts fell 6% in September to a seasonally adjusted annual rate of $1.1 trillion, according to the latest monthly starts report from Dodge Construction Network. Residential starts fell 1% last month, down to a seasonally adjusted annual rate of $382 billion, while multifamily starts fell 6%. This year to date through September, residential starts rose 7%, driven by 17% growth...Read More>>> https://buff.ly/40n5nze #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #ApartmentConstruction

U.S. multifamily housing is experiencing a significant pullback in new construction, even as the number of units that began construction in the past two years is expected to reach a 40-year high. While 675,000 units were added this year, construction starts on rental apartments, after peaking in the first quarter of 2022 at 211,000 units, have since plummeted 70% to just 65,000 units starting construction in the third quarter, reflecting a dramatic shift in market dynamics. https://lnkd.in/gk4yDZ2a

Multifamily construction starts plunged 36% in January, the biggest drop since the pandemic began. Experts weigh in on the factors causing the slowdown and what it means for renters, developers, and the overall housing market. To learn more: #CRE #CRENews #MultiFamily