Quote:
Originally Posted by the urban politician
^ Friggin rental boom is over and these champs are still poking around in the dirt
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There are going to be a good number of rental tower starts this year (in other words, the rental construction boom is still on this year.....the demand/rate boom is definitely at least slowing meaningfully, and at least at present). Expect the slowdown in starts to be next year. Which implies a slowdown in deliveries not until around 2020. Will the rental market be overbuilt? Yes Will effective rents stop growing and in fact drop at least a bit over next few years? Yes Will you need to lower rents in your units? I don't know But be prepared for that possibility......
Also, let me just add that the rental market shifting back toward a tenants market for a couple years or even more is not at all an inherantly bad thing overall. We've had an incredible run of many consecutive years of market leverage firmly belonging to landlords with strong rent increases......that never - thankfully, as that would be a very bad economic outcome - lasts forever, nor should it. Market leverage shifts back and forth over time. Shifting toward better news for tenants over the next few years....