Experts are becoming concerned about the potential for oversupply in the rental market around the nation’s capital, they indicated at the RealShare Apartments East conference.
Some remain positive when they look at the near future of rental housing, citing strong fundamentals, available debt and equity and the currently limited development pipeline for multifamily properties, GlobeSt.com reports.
At the same time, panelist Wistar Wood told conference attendees he thinks the D.C. metro area in particular may see less of a strong trend due to a large number of units scheduled to open soon, a concern he indicated applies to some other areas of the East Coast as well.
Enough time has passed since the demand for rental housing began to rise that developers are beginning to complete units in significant numbers. If demand is met in some submarkets, those areas may experience downward pressure on rents due to the increased competition.
At the same time, other markets in the region were cited as stronger areas drawing more of the panelists’ attention. In particular, Boston, Nashville, New Jersey, North and South Carolina and New York City were all mentioned as areas that might be ripe for investment as D.C. begins to cool.
Owners and prospective investors in these areas may wish to investigate rental property management companies to find one suitable for helping them make the most of this opportunity.
The panelists also indicated that, whatever the conditions in specific areas, the industry’s overall trend is expected to be a positive one.