With construction in some Sun Belt markets continuing to outpace absorption, concerns are growing about potential oversaturation in certain metros, though demand in many areas remains strong.
Yisroel Berg, CIO of multifamily at Harbor Group International (HGI), in an interview with IREI, said, “We are seeing some Sun Belt markets where supply is outpacing demand, and we expect to see that trend continue as new construction enters certain markets while other properties finish the lease-up process. However, construction is falling off in the majority of Sun Belt markets and strong demand is continuing as supply tapers off, outpacing the delivery of units.”
The leasing process has lengthened, however. What once took 12 to 15 months is now stretching to 18 to 24 months, reflecting the time needed to absorb new inventory.
In response, Berg shared a strategic focus on resident renewals to maintain occupancy and reduce turnover costs. “Keeping existing r
