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A ‘historically significant’ number of new apartment units are under construction or planned in the Capital Region over the next two years, and vacancy and rental rates are likely to show it, Business Report’s latest Real Estate Report edition notes.
Based on findings by Cook, Moore, Davenport & Associates, some 13,930 units were built between 2015 and 2024, equating to 1,393 new units per year. It’s a pace that’s roughly 60% greater than during the preceding decade, which included the post-Katrina construction boom.
The report, presented recently at the Greater Baton Rouge Association of Realtors Trends conference, warns that owners and apartment managers should continue to brace for competition as these new units compete for tenants. However, he does note that it’s likely that not all of those on the drawing board will be built, due to the increased cost of construction.
Another challenge: Very few of the new complexes offer standard, mid-grade units, instead targeting either more affluent tenants or lower-income households.
Get more analysis of the multifamily market and check out the rest of Business Report’s Real Estate Report.
