A slowdown in apartment construction? Cushman & Wakefield says it's so

Developers have been in a race to add new multifamily units to cities across the country since 2015. But the latest research from Cushman & Wakefield suggests that this building boom is finally slowing. In a report released in December of last year, Cushman & Wakefield said that Class-A multifamily construction has peaked and is expected to now slow. The company said that Class-A deliveries fell 22 percent from the third quarter of 2017 to the third quarter of 2019. What’s behind the slowdown in new construction? Cushman & Wakefield cited rising construction costs, a lack of land in key markets, slowing rent growth and slower capital appreciation among multifamily assets. Looking back at the apartment construction boom, Cushman & Wakefield said that more than 68 percent of annual multifamily deliveries from 2015 through 2018 were Class-A properties. The company said, too, that just 10 U.S. markets accounted for 36 percent of all these deliveries from 2015 through 2018.

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