Last week, I was in Toronto for a couple of days and marveled at how many cranes are delivering condominium product to the market. The construction is even trumping the high level of activity in Manhattan, where mega-story product with full floor units are being gobbled-up, fetching $20 million at the low end of the premium category.

However, the story does not stop in New York City or Toronto, not with condominium construction. There is a multifamily rental product boom occurring in every urban center in the United States.

Last week, Axiometrics, the firm that keeps track of apartment development activity, reported that 74 rental towers are on pace to be delivered in 2014, with an additional 81 slated for 2015. Demand is being driven sky high by young professionals and empty nesters fueling the urban renaissance, a trend that will likely continue unabated.

Low single-digit vacancy rates, coupled with high single-digit rent increases, with an overlay of uber-low interest rates guarantee that product will keep on coming. It's a lovely symphony, but alas, every cycle comes to an end. Let's hope this one has a soft landing.



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