Where New Apartments Aren’t Happening …
June 28, 2017
When it comes to adding apartments to a local housing market, Honolulu is the hardest metro for new rental units, according to survey commissioned by the National Apartment Association (NAA) and National Multifamily Housing Council (NMHC).
In research conducted by Hoyt Advisory Services on behalf of the trade groups, 50 metro areas were studied on housing-related factors including local regulations and the amount of available land to develop. The study concluded with a new ranking called the Barriers to Apartment Construction Index, which issued scores up to 19.5 for the most difficult market to add apartments (Honolulu) down to -5.9 for the easiest market (New Orleans). Boston, Baltimore, Miami and Memphis were among the most difficult markets for the creation of new apartment housing, while Little Rock, Kansas City, Indianapolis and St. Louis were among the easiest.
NMHC and NAA also released Vision 2030, a set of recommendations for the federal government on how to lower barriers to development and better address the current and future housing shortage of all types of apartments and at all price points. The trade groups noted that the last time more than 325,000 apartments were constructed in a single year was 1989, and they added a new wave of apartment construction would boost the economy in the coming years.
“While the number of new apartments built each year has been rising, it hasn’t been enough to meet current demand and make up for any possible shortfall at certain price points in the years following the recession,” said NAA Chairwoman Cindy Clare. “This imbalance between high demand and limited supply options has driven down affordability and reduced housing options for renters. Rents tend to be particularly high in areas with the greatest barriers to new development, such as California, where there’s a significant shortage in available land for building new apartment homes. This makes it more expensive to build.”