Apartment Pipeline Slows
The pace of apartment construction has slowed by 8% in the past 12 months, according to a new report from JLL.
The JLL Q3 Apartment Market Overview blames continuing difficulties in sourcing staff and recent builder collapses for the lag as well as a move by builders to seek the security of working on big infrastructure projects instead.
JLL senior research director Leigh Warner says as a result things will remain tough in the rental market for some time with less stock coming to market.
“The pipeline’s been shrinking for quite some time. All we’ve seen in the last quarter is a few projects being reactivated and some recent DAs for more density,” he says.
The report says the number of apartments being marketed has dropped 30% in the past year.
Projects that are proceeding are more likely to be build-to-rent projects than build-to-sell, according to Warner with that part of the development market growing by 80% in the past 12 months.
