Luxury Apartment Market Anticipates Challenging Year

New York, NY, January 3, 2017—The luxury apartment market is expected to face a tough year in 2017, according to a Wall Street Journal article entitled, “Luxury Apartment Boom Looks Set to Fizzle in 2017.”

The article suggests that landlords will be forced to cut rents as the seven-year long boom ends. The situation is the result not of lessening demand but due to the number of new apartments coming online, which is outpacing demand.

According to the article, “More than 50,000 new units were rented by tenants in the fourth quarter in the U.S., six times the number in the year-earlier period. But that demand was overwhelmed by the 88,000 new units that were completed in the quarter, the most since the mid-1980s.”