US Apartment Construction Down 12%
We're starting to see some hard data on the impact that COVID-19 has had on the apartment industry in general, and one of those pieces of information comes from a RentCafe report on apartment construction and covered by GlobeSt.com:
The slow pace of construction, crew shortages and construction bans that came with COVID-19 has cut apartment construction by 12%, according to a new report.
There are 283,000 new apartment units expected to hit the market this year, which is much less than a peak in 2018, said the report by RENTCafe Blog.
The downward trend is beginning to mirror the hit from the 2008 economic recession, according to the article by Florentina Sarac, “Apartment Construction in 2020 at 5-Year Low Nationally, Down 12% from Previous year.”
The report is based on data from yardi Matrix, which included information on large apartment buildings of 50 or more units. In 2019, there were 321,000 units, but this year, there will only be 283,000.
“The downtrend is mainly due to the slower pace of construction, as a result of a shortage of available construction crews, funding and permits, along with some temporary bans on construction projects in certain states,” wrote Sarac. “2020 has been a difficult year for the apartment industry, with more than half of developers reporting delays in construction due to the pandemic.”