|Appraisal Research Counselors’ Ron DeVries (here with Rebecca Franklin and Jennifer Ochab) says that there’s a record number of rental apartment units in development and expects perhaps 5,000 to be under construction this year, of which 3,500 will be completed and delivered next year. That surpasses the most recent high of 2,500 units delivered in ’10. Is the market overheated? Ron says, there may be some pain next year, but over the longer term, demand will be in balance with this burgeoning supply of mostly luxury dwellings.
|On a tubing excursion to Magician Lake in Michigan last summer, Ron wanted to make his daughter Nicole and brother-in-law Norm Hansen look good by falling into the drink. But, he says the apartment marke t is on steadier footing. These days people concerned about lingering economic uncertainty, see renting as less risky than buying. Others, still may not have the down payment or credit score to buy. That explains why some investors are paying $400/SF for multifamily, a price on par with what they might pay for a condo building.|