Multifamily building permits rose 5.7 percent in April from a year ago. Just as fast as new apartment complexes are being built, they are filling up with tenants.
The New York Times reports that while economists and the Federal Reserve remain concerned about overdevelopment, where eventually demand will drop and flattening prices could inhibit builders from paying their debts, most new commercial properties are faring well.
New residential projects in places including Baltimore, Philadelphia, Seattle, and Columbia, S.C. have been met with fanfare as units are being leased quicker than expected.
Ron Caplan, the president of PMC Property Group, a Philadelphia-based developer of rental properties, said that his company’s experience was at odds with the fears about overbuilding. “So far the development that we’ve done has been embraced by a continuing larger population,” he said. “We have found that the buildings continue to fill up.”