Multifamily Plunge - April
- New This Month
- Last Month
Mulifamily Starts Plunge Whopping 74% Y-O-Y to 78K Units; Can They Fall Further?
According to the Census Bureau’s latest report, new home construction fell to its lowest pace on record in April.
For April, multi-housing starts have dropped to 78,000 units, down 42 percent from last month and a significant 74 percent drop year-over-year.
Steve Wendel, Co-Head of Deutsche Bank Berkshire Mortgage (DBBM), tells MHN, “With the big investors to the LIHTC program—Fannie Mae, Freddie Mac and big banks—having dropped out of the investor market, and with very little availability of debt financing, there is no money to pay for new construction. In most markets, occupancy levels are low and rents are falling. In these circumstances, new construction just doesn’t pencil out."