Excerpt from the 1Q18 Witten Advisory: The above chart highlights that new supply growth rates are down in most markets, albeit by a narrow majority.
With starts through February, Charlotte outpaces all markets with new inventory growth of 5.5% – up sharply from a year ago. Similar ramp-ups also occurred in Austin, Portland and Nashville, though only up to 4.5%. Starts did ease to 4% growth in Denver and Seattle and pulled way back to below 4% in Salt Lake City.
Looking across the rest of the list as we move right, there have been some big swings over the past year. In fact, starts declined by 10% or more from the prior year in most Midwest metros, but also in several markets in the Southeast, Florida and Texas. In Northern California, however, construction increased by 10% or more in all three SF Bay area markets and Sacramento.