The Wall Street Journal (reposted on Realtor.com) is reporting that the nation’s builders are on track to finish more new apartments in 2020 than in any year since the 1980s, however data from RealPage shows these new units are trending toward the higher end. According to the report, upwards of 371k new rental units are expected to come online this year – which is 50% higher than the number of new units completed in 2019. In addition, RealPage also says that the gap between luxury rental properties and those “one rung lower” is increasing.
“State and local governments are grappling with how to create more rentals to combat the rising cost of housing for middle- and lower-income families. But as much as 80% of new supply this year will come from luxury developments, or what the real-estate industry calls “Class A” properties, said RealPage chief economist Greg Willett.”