Apartment starts stay low with rising costs and tight equity, Jay Parsons notes

Apartment starts stay low with rising costs and tight equity, Jay Parsons notes
Apartment construction faces equity, cost headwinds

Jay Parsons highlights ongoing challenges in the apartment construction sector, noting that new starts remain subdued with no indication of a near-term rebound.

According to Parsons, a recent NMHC survey of apartment builders found that equity remains difficult to secure, higher interest rates are creating headwinds, and construction costs—which had previously stabilized—are now climbing again.

Parsons has recently noted that nearly one third of American renters are unable to afford typical rental operating costs, largely due to high taxes, in a previous analysis (link). He also reported on the merger between Centerspace and IRT, which created a major apartment REIT with 44,000 units (link). These developments reflect ongoing pressures throughout the rental housing market.

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