Multifamily Bubble Continues to Expand

If you have taken a ride through any major metro area in the past few years, you have assuredly noticed the near constant construction of multifamily housing. Atlanta and Chattanooga have maintained an impossible rate of construction starts, putting new housing units where it would seem impossible. The trend is not limited to the Southeast; Freddie Mac expects to lend between $270 and $280 billion for new multifamily construction nationwide in 2017. With most of these new construction starts positioned as class B and C, there is little wonder that vacancy levels are at all-time highs and rent growth has slowed, if not stopped, in major metro areas.

Every quarter, analysts expect construction starts to begin showing signs of slowing, but this has yet to come to fruition. Where will we be when the boom finally does slow? Will we be left with aging, vacant, apartment and condo units littered throughout our metro areas? Is it possible that a new trend will emerge, possibly a push for urban single family homes? No one knows, but what we can predict is that the ultimate slowing of momentum will not be pretty and that we will have to pull out of another economic tailspin. The federal government is facilitating this bubble, and taxpayers will likely be responsible for the wreckage once the bubble bursts.


We lease commerical properties including retail space, office space, and warehouse space in the Dalton area.

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Barrett Properties has over 1 million square feet of industrial space in Northwest Georgia.

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We offer climate controlled self stroage units in 10x10 and 10x15 sizes.

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