Did I miss information on under construction or new permits issued? It seems everywhere new units are under construction or sites being developed. I would be hesitant to commence new projects today but perhaps I am misinformed.
On the rental side, the total number of units currently under construction has fallen quite a bit over the last several years, largely because a lot of projects have moved from under construction to competition. Most of those begin construction several years ago. There was a huge dip in new projects when interest rates started to climb in mid-2024, which is why the units under construction figure is falling today. Many developers initially hoped to wait out the higher-rate environment, but over the past year or so, they appear to have accepted that elevated borrowing costs are here to stay. And despite the enormous expansion in supply since the pandemic, occupancy remains relatively high and demand is still there, even if it has softened. In the eyes of developers and investors, Knoxville can still absorb additional units, which helps explain the steady stream of new project announcements. But announcing a project and actually beginning construction are two very different things.
Did I miss information on under construction or new permits issued? It seems everywhere new units are under construction or sites being developed. I would be hesitant to commence new projects today but perhaps I am misinformed.
On the rental side, the total number of units currently under construction has fallen quite a bit over the last several years, largely because a lot of projects have moved from under construction to competition. Most of those begin construction several years ago. There was a huge dip in new projects when interest rates started to climb in mid-2024, which is why the units under construction figure is falling today. Many developers initially hoped to wait out the higher-rate environment, but over the past year or so, they appear to have accepted that elevated borrowing costs are here to stay. And despite the enormous expansion in supply since the pandemic, occupancy remains relatively high and demand is still there, even if it has softened. In the eyes of developers and investors, Knoxville can still absorb additional units, which helps explain the steady stream of new project announcements. But announcing a project and actually beginning construction are two very different things.