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