/cbre_logo.png?sfvrsn=eac6e070_4 "cbre_logo"){kind=logo}
How Can We Help You?
Sector and market analytics
Driven by economists and leveraged by market makers.
CRE performance across major metros and asset classes. History and forecast by CBRE.
Thought leaders abound
Depth, breadth and rigor concentrated at all levels.
Synthesizing macro factors and leading indicators into actionable national, sector and market research.
Advantage is CBRE
Perspectives, scale and connections that work.
Commercial and cultural insight aligned with intellectual capital and experience to fuel informed real estate decision-making.
Which data are right for you?
Data views and extracts by scenario and on demand.
Check out the fundamentals, capital markets, and data tools now on our one-pager.
Experience the platform
See first hand why top institutional investors, direct lenders and private equity firms are clients.
Set a time that works for you.
Click the link above to access all EA Insights
Big cities need all the apartments they can get
Dec 13, 2022, 07:01 AM
by
Matt Mowell
Several months ago, CBRE Econometric Advisors chronicled how the post-pandemic surge in urban housing demand precipitated a multifamily supply shortage, causing apartment rents to become less affordable. Now, however, multifamily demand is slowing amid worrying signals about the direction of the economy. Nevertheless, structural supply shortages remain.
Figure 1 plots the additional supply needed to bring multifamily vacancies to their pre-COVID levels. Most major cities have plenty of headroom to build more units. San Francisco, which has been slow to recover from a pandemic-induced resident exodus, is a key exception. Certain Sun Belt markets, such as Nashville and Austin, also have less headroom for new development, as rental housing supply has closely aligned with household growth.
Ultimately, CBRE expects rental housing shortages to persist in most cities as new construction starts decelerate amid higher capital costs and the likelihood of a recession in 2023.
Figure 1 plots the additional supply needed to bring multifamily vacancies to their pre-COVID levels. Most major cities have plenty of headroom to build more units. San Francisco, which has been slow to recover from a pandemic-induced resident exodus, is a key exception. Certain Sun Belt markets, such as Nashville and Austin, also have less headroom for new development, as rental housing supply has closely aligned with household growth.
Ultimately, CBRE expects rental housing shortages to persist in most cities as new construction starts decelerate amid higher capital costs and the likelihood of a recession in 2023.
Ready to Get Started?
60 second demos.WATCH NOW |
Experience the platform.TRY IT TODAY |
Become a client.NEXT STEPS |
