Homebuilders Have Most Speculative Unsold Inventory Since May of 2008
The number of units under construction is rapidly falling. It’s down from 1.71 million to 1.41 million, a decline of 17.7 percent. In the Great Recession, the number of completed units topped at 1.42 million. So, this is a very elevated number. However, most of this is multi-family in stark contrast to the Great Recession.
What’s Happening? We are building apartments for immigrants who are here (legally or illegally) and others who aren’t going to get here because Trump effectively closed the border. Completed units have not yet impacted the price of rent, at least renewals. How long can that last?
