As the multifamily construction pipeline contracts and occupancy begins to improve, developers are looking ahead to what today’s pullback in new supply could mean for the next cycle. Sean Rae, senior managing director, capital markets, at Crow Holdings Development, discusses where supply is tightening, what it takes to finance new development in the current environment, which markets are becoming more attractive and why projects breaking ground today could ultimately deliver into stronger supply/demand conditions.
Cushman & Wakefield reported that the multifamily construction pipeline has fallen to about 475,000 units, or 3.5 percent of existing inventory — its lowest level since 2013. With development starts remaining muted, are we reaching a point where today’s slowdown in construction could create a supply shortage sev
