January 20th – Getting High on Your Own Supply

Chart of the Day

A bit of a narrative violation from RealPage’s Jay Parsons challenging the assumption that supply constrained markets tend to outperform when it comes to rental growth.  Supply, in and of itself isn’t a bad thing.  In fact it adds to economic growth creating jobs for new employees who will need a place to live, resulting in a positive feedback loop.  The risk is that – as we have seen during COVID – demand can change much more rapidly than supply.  When it does so negatively, markets with less supply constraints tend to be more exposed.

high supply sun belt markets outperform

Source: RealPage

Basis Points – A candid look at the economy, real estate, and other things sometimes related. 

Visit us at RanchHarbor.com