The Commercial Real Estate Alpha Site

Oversupply, under supply, level of demand and the sweet spot of supply.

You will notice on the chart and research provided, that some of our local cities and towns are named. (Sarasota, Fort Myers, Lakeland, etc).

via Jay Parsons by way of LinkedIN. Click here for complete article and others from Jay.

What share of your market’s apartment units were built since 2020? Some of these numbers might surprise you. Sure, you know we’ve built a ton in this cycle, but did you know…

–> Of every 10 existing apartment units in Huntsville, AL, more than 4 were built here in the 2020s.

–> More than 3 of every 10 apartments in Wilmington NC, Lakeland FL, Boise ID and Sioux Falls SD were built just this decade.

–> Austin takes the crown among larger metro areas, with 28% of existing units built just since 2020.

–> Other large markets where newly built units comprise >20% of the existing apartment stock: Charlotte, Nashville, Salt Lake City, Raleigh/Durham, Jacksonville, Phoenix and Orlando.

–> Other smaller metros on the list: Fort Myers FL, Savannah GA, Charleston SC, Sarasota FL, Asheville NC, Provo UT, Palm Bay FL, Daytona Beach FL, Colorado Springs CO, Myrtle Beach SC, Port St. Lucie FL, and Fayetteville AR.

–> Any markets surprising you for NOT making this list? How about Dallas, Atlanta and Tampa? They built a lot by total number. But they’re large MSAs. So as a percent of existing stock, those new adds amount to a mid-teens share.

–> This one may surprise you: Minneapolis, Kansas City, Northern New Jersey and Seattle aren’t typically associated as high-supply markets. Yet when you look at the share of apartments built since 2020, those four are all at 13-14% — which is within a few percentage points of Dallas, Atlanta and Tampa.

–> And what markets have the SMALLEST share of their apartment units built since 2020? That’s a list dominated by low/no growth markets like Youngstown OH, Shreveport LA, Springfield MA, Flint MI — all close to zero. Among large metro areas, seven come in below 5%: Providence, Detroit, New York, Pittsburgh, San Francisco, Cleveland and Los Angeles.

Any surprises that made or DID NOT make this list?

#apartments #housing #multifamily #sarasota #bradenton #pinellas #orlando