Monday, September 28, 2015

Central Planners Apartment Boom is About to Bust





Since the housing bubble burst, metropolitan areas have seen an exponential increase in apartment buildings.  Charlotte is no different.  The central planners’ primary interest is high density urbanization that primarily appeals to young, single professionals.  Many are concerned this building frenzy isn’t market driven, but is financed by low interest rates and wealthy Chinese investors with an EB-5 visa.

What these central planners haven’t realized is sooner or later these young people are going to marry and want families.  Living in an apartment will no longer have its appeal.  They are going to want to own a home of their own.  The question remains will these apartments retain its occupancy rate over time.  Here is an excerpt from WCNC:  

 Real Data found in its Fall report that there are 23 apartment buildings currently under construction, and 18 more in the planning phase. This is in addition to a steady stream of apartments opening in recent years.

"Development will eventually slow down. We can't keep up at this pace," said Dalton.

Some are even suggesting the growth uptown is experiencing with apartment buildings might be a bubble.

"There's a bubble of apartments being built. There's seems to be a tremendous amount of them coming online," said SouthEnd realtor Rob Swaringen. "It'll be interesting to see in the next five to 10 years."

Dalton acknowledged there's some concern in the community that the apartment boom might bust, but doesn't think Charlotte's at that point. He predicts some of the apartment projects won't come to fruition.

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