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Luxury Loses in Otherwise Positive Multifamily Market

JERSEY CITY, NJ—High-end supply now outpaces demand in many markets, writes Altus Group's Chuck DiRocco in this EXCLUSIVE commentary.

By Chuck DiRocco | Updated on February 27, 2017

Chuck DiRocco of Altus Group “Millennials crave a community that’s more easily provided in multifamily units,” writes DiRocco.

JERSEY CITY, NJ—Post-recession, apartment real estate has been the sector to watch as rents escalated and development was relatively controlled. Entering 2017, the industry buzz revolves around overdevelopment within certain markets and classes, and rents beginning to show declines. Nonetheless, interest in the US rental market is expected to continue to increase over the next few years.

Both trends are positive for potential tenants, thus making the home purchase less attractive. Combined with creeping interest rates and mounting debt, renting looks to become more prevalent as the “American Dream” of homeownership possibly becomes even more remote than ever for many.

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