New from MPF Research: 2Q Macroeconomic, Lending and Permit Snapshots
It’s important to stay up-to-date on the latest in the industry, MPF Research in the nation’s leading source of multifamily research. Recently, MPF released an infographic depicting the health of the overall economy as of 2Q 2016, for those interested in how the apartment sector might be affected.
A second infographic illustrates the multifamily financing environment as of 2Q 2016, and shows the continuing shift of loan money to multifamily since the Great Recession.
In a subsequent article, MPF covered the issuing of new permits around the country, which has continued to slow from its recent peak. Approvals were down 14.4% from June 2016 and 8.7% from July 2015. Still, permits remain above average for the current development cycle, during which permit and construction activity have risen to unprecedented levels.
Permits peaked at 60,200 units in June 2015. The low – 15,900 units – came in January 2012.
Year to date, the frontrunners in permit activity remain generally unchanged, with the big three – New York, Los Angeles and Dallas/Fort Worth – topping the list. A drop-off in year-to-date permit activity in New York comes after a spike in authorizations in 2015. That year, developers rushed to obtain permits before the June expiration of a tax incentive program.
In Houston, developers are finally easing back the throttle on the most aggressive apartment development pace in more than two decades. More than 38,600 units were under way at the end of 2nd quarter 2016. Turmoil in the energy sector, the primary driver of the Houston economy, has added uncertainty to the apartment market’s outlook here.
MPF is the nation’s leading source of multifamily industry research, and can provide custom research and analytics to help you run a smarter business.