By Brook Furniture Rental – http://www.bfr.com/
According to recent reports by the New York Times, the luxury apartment boom looks set to fizzle in 2017 and landlords may be facing some tough times. The reason is not in lack of demand but rather in a glut of supply. Across the country, new construction has focused on the development of high-end properties influenced by the flood of young, high-earning professionals entering the urban city centers combined with strong rental growth. According to CoStar Group Inc., real estate research, of 189,100 multifamily rental units completed between the fourth quarter of 2015 and the third quarter of 2016 in 54 metropolitan U.S areas, 84% were in the luxury category.
However, now the number of available luxury apartments coming on the market are outpacing the number of possible renters forcing developers to offer time-sensitive incentives such as free rent and parking as well as deep concessions. According to MPF Research, more than 50,000 new units were leased in the fourth quarter in the U.S., six times the number in the year-earlier period. But the demand was weakened by an additional 88,000 new units that were completed in the same quarter, and it looks like the gap is going to widen further in 2017. More than 378,000 other new apartments are expected to be completed in 2017, almost more than 35% of the 20-year average according to real estate tracker Axiometrics Inc.
- New York will be flooded with nearly 30,000 new apartments in 2017
- Dallas is expected to see nearly 25,000 new apartments delivered
- Los Angeles is developing 13,000 new apartments
With a soft rent growth environment in most urban markets combined with an over saturation of high-end luxury apartments, it looks like 2017 is looking good for renters and challenging at best for landlords.
How Can Brook Furniture Rental help?
The Brook Advantage Program was designed specifically to help multifamily housing attract new residents and gain lease-ups. From new communities just coming on the market to established developments, our solutions have resulted in success stories for our customers.
Furnished Model Suites
Beautifully furnished model suites enable prospective tenants to envision themselves living there no matter what the floor plan
Brook Connect Events
Advertised events for current residents and Brook’s network of real estate professionals resulting in new leads
Optional furnished apartments can set your community apart from the competition
Our professional team will work with you to design a program specifically for your demographic and community goals
Focus On Community
Your community video placed across our network of social sites and blog
For more information, visit the Brook Advantage Website or contact us at 877.285.7368