Delivery Peak Pushed Out As Apt. Builds Slow

December 7, 2017

Delivery Peak Pushed Out As Apt. Builds Slow

December 5, 2017 | Paul Bubny | GlobeSt.com

SANTA BARBARA, CA—This was supposed to be the peak year of this cycle for apartment deliveries. However, the multifamily construction pipeline is taking longer than anticipated to clear out, due mainly to a shortage of qualified labor, says Yardi Matrix. The firm’s forecast now calls for 2018 to represent the peak for deliveries of newly built apartments.

“Some analysts posit other reasons—for example, construction materials and structures are more complex today and therefore take longer to complete, or that local government approvals are taking longer than past years—but the labor shortage is almost certainly the primary driver,” according to a Yardi Matrix report. “Multiple surveys done by trade groups associated with the construction industry have been beating the drums about the lack of skilled labor for a few years.”

Construction industry employment has yet to fully recover from the downturn. It peaked at 7.7 million in 2007, dropped as low as 5.5 million in the wake of the Great Recession and now stands at 6.9 million. Nearly a decade after the housing bubble burst, “Fewer younger people are entering the industry as a profession, and employer surveys reveal that development firms are increasingly finding it difficult to hire a full complement of construction workers,” the report states.

Read Full Article Here

Print Friendly, PDF & Email
Go Back
default image

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.

John E. Moriarty, ChFC Founder & President, e3 ConsultantsGROUP December 2015 February 3, 2016