Apartments Risk Excessive Tax Assessments in Overbuilt Markets
August 27th, 2014
Published in: Apartment Finance Today
By John Gendler
As many industry veterans know, new construction can lead to overbuilding in some multifamily markets when, all too often, optimistic developers assume their projects will be successful despite signs of pending excess inventory. And when overbuilding does occur, new properties generally compete more successfully for tenants than old properties, thereby squeezing existing supply even further.
This untempered mind-set has consistently led to overdevelopment in the past and may be ushering in an oversupply of multifamily properties in some markets now, as well, creating challenges for tax-paying property owners . . . (Read more)