Major Apt. Developers Disclose Plans to Slow Pipelines as Multifamily Deliveries Expected to Peak Next Year – CoStar Group
Slowing Current Development Pace Could Help Avoid Overbuilding and Extend Rise in Values, Rents in Multifamily Sector
In a reversal of current development trends that could help extend the run of increasing property values and rents in the multifamily sector, executives for several of the largest publicly traded apartment owners and developers said they are planning to trim back their construction pipelines in coming quarters.
UDR, Inc. said its development pipeline would end 2017 at a little over $800 million, below the REIT’s strategic range of $900 million to $1.4 billion. UDR Chief Investment Officer Harry Alcock said he expects that trend will continue through next year.
“We’re actively looking to backfill for 2018 and 2019 starts, but my expectation is that given the opportunities, our pipeline will fall below the low end of that [range] for at least the next several quarters,” Alcock said.