Quote:
Originally Posted by shawkr
A few thoughts on the idea of a "glut".
Why are unsold units evidence of a "glut"? By construction (literally), condo towers have the property that all units are constructed at the same time. Also true of rentals. Difficult to time that perfectly, so it seems reasonable to think that it might take a few years before you unload the last unit at a given location. Contrast this with detached housing, where completions can be almost perfectly matched with ready buyers. If anything, I would think condo projects that sell out by the time construction is complete are evidence of a condo shortage.
Flooding? Vacancy rate is 1.5%. And lots of the existing rental stock is old. I think there is a plenty of room for rentals. In general, I think talk of "gluts" while the housing price level continues to rise faster than the general price level is a bit misleading.
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A supply that exceeds demand is pretty much the definition of a glut.
A rental glut has already hit many cities in the US. Council has approved thousands of rental units over the last two years. As those are approved it is going to push vacancy.
https://www.bloomberg.com/news/articles/...-through-the-hottest-u-s-housing-markets
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