by Wolf Richter, Wolf Street:
Because that’s where the money is, on paper. But it’s not where the market is.
There are plenty of brand-new apartments to choose from, thanks to a multifamily construction boom in major cities. These apartments are in good locations. They’re nice and have everything you’d want. But for many people, rents are just too damn high. Here’s why:
In the first half of this year, 87% of the completed apartment projects with 50 or more apartments in 130 major cities in the US are considered “high end,” according to a report by RentCafé, based on Yardi Matrix data on 80,000 large-scale apartment developments. This is up from 52% of properties completed in 2012: