While development site sales were a bright spot for the US real estate market in 2020 as they only fell 5%, apartment builders pulled back last year, according to Real Capital Analytics data.
That reversed a five-year trend of apartment developers leading the way, accounting for 44% of commercial property starts. It is not surprising: the apartment sector was the first to see price discovery since the Great Financial Crisis and became the most heavily traded property type in the US, according to RCA.
"With rising prices and growing investor interest in the sector, development was the next logical step," writes RCA's Jim Costello. "In other words, if you can't buy it, you build it."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
