For some time I've shared concerns about aggressive rent growth, the lingering impact of a lack of income growth by most Americans, economic / employment challenges facing wonderfully cause-oriented Millennials, a significant lack of affordable housing, plus the significant on-going flow of new product. I have shared that while maybe this is not a tsunami growing, challenges are around the corner. Throw in if a recession comes, and the challenges get that much greater.
A new article was just posted on Multifamily Executive that addresses many of these points:
As the author concludes, "Disaggregating these statistics, you find that the reality is far more daunting for the newest properties...The properties arriving on the market today are doing so far closer to the next recession than to the previous one, and at a time when demand has seemingly hit a plateau and supply growth continues to accelerate...As I’m fond of saying, the party in the apartment market isn't over, but these newly completed properties are arriving after all the punch is gone and all the popular people have already left."
What are you doing to prepare for more challenging times that likely lie ahead in the near term?