Supply Myth Debunked: Multi-Family Units Under Construction Double 2008 Peak
Recent data shows that there is no oversupply of housing on the market and that demand for multi-family dwellings is still strong despite some experts cautioning against getting too optimistic about current conditions due to potential shifts in demand or supply going forward.
Jan. 03, 2023 4:08AM
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A picture showing rows of newly constructed multi-family dwellings with people walking around them
The housing market has been a hot topic of discussion for the past few years, with many people wondering if there is an oversupply of units on the market. However, recent data shows that this may not be the case. According to research conducted by real estate analytics firm Reis, the number of single-family units under construction is only 78% of the peak in 2006. On the other hand, multi-family units under construction are double what they were at their peak in 2008. In total, units under construction are 20% above 2006 levels. This data indicates that there is no oversupply of housing on the market and that demand for multi-family dwellings is still strong. This could be due to a variety of factors such as an increase in population or a shift in preferences towards living in multi-family dwellings instead of single family homes. Despite this positive news, some experts caution against getting too optimistic about the current state of affairs. They point out that while demand may be high now, it could change in the near future due to economic uncertainty or changes in consumer preferences. As such, they suggest taking a more cautious approach when investing in real estate and keeping an eye on any potential shifts in demand or supply going forward.