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Sign in Sign up for a FREE subscriptionApartment completions to surge in 2020
After the U.S. apartment stock grew more than 2 million units during the past decade, the volume of annual completions will climb further as the 2020s begin, according to real estate technology and analytics firm RealPage. Scheduled deliveries this year will jump to 370,942 units, up 50 percent from the 2019 total of 246,779 units.
“Developers have struggled to produce enough new housing to meet demand in recent years,” according to Greg Willett, chief economist at RealPage, Inc. “However, the volume of apartments on the way in 2020 certainly could test the market’s ability to absorb a big block of additional units in a short time frame.
“The big jump in deliveries during 2020 means it’s likely that occupancy will slip a little from 2019’s record level. Pricing concessions, including periods of free rent, should be common at the new properties building an initial base of residents. Rent growth should slow for existing luxury projects in neighborhoods wher