U.S. apartment construction culminated in 2017 with an impressive 331,765 apartments delivered and has been slowing down since then, with projections for 2019 totaling less than 300K.
According to Tara Jeffcoat, senior research analyst at Yardi Matrix: “Rising construction costs and a tight labor supply certainly contribute to a flattening and decline of expected completions, but 2019 is part of a larger trend of developers gearing up for next cycle. Although completions peaked in 2017, there is a significant number of prospective properties in the pipeline.”
Following the national trend, construction in the Charlotte area is starting to hit the breaks as 6,000 units are expected to open, 2% less than last year.
Here are a few highlights:
– Projections show that 6,003 new apartments will come online in Charlotte metro by the end of 2019 — that’s 2% less than last year’s 6,116 deliveries.
– Unsurprisingly, the city of Charlotte is delivering most of the supply, as 5211 new units are projected to open here in 2019 — that’s nearly 500 more units than those delivered in 2018.
– The Charlotte metropolitan area is building almost as much as Silicon Valley this year and a few hundred more units than Greater Boston.