Growth in multifamily construction, particularly rental apartments, is tapering after a few strong years of activity following the recession. Nearing overbuilding in many markets, the category is expected to reach a cycle-high in 2017, and lenders are already pulling back from big projects, suggesting that the rapid development in cities like New York and Chicago could slow. Most of the growth has been concentrated at the upper end of the market, however, leaving the low- and middle-income tiers with less inventory than there is demand for. Municipalities are considering upzoning as one solution to create mixed-income projects that combine margin-friendly, high-end multifamily housing with affordable units as well as retail and office space, parking and access to transit.
Categories:Construction Dive