Houston, we might have a building problem. It seems some people in the business community are a little concerned that all the new apartment construction happening around town could turn into a glut. What’s that? Atlanta developers are becoming a little zealous with the latest real estate category du jour? Say it ain’t so! Here’s what we know: more than 4,000 rental units are under construction or in the pipeline for Atlanta’s urban core; rents are up and vacancies are down; and Atlanta’s apartment construction is in line with a nationally growing appetite for rental housing in vibrant urban areas. But how much is too much? Well, it depends on whom you ask.
Steve Baile of the Daniel Corporation (the company behind the rental tower rising as part of the 12th and Midtown development) is, shall we say, less than optimistic. He’s of the opinion that job growth is needed or we could be in for a rude awakening. Also, developers have a pesky habit of sometimes building when they can get financing irregardless of real demand. At the other end of the spectrum is Post Properties' chief executive David Stockert. He’s forecasting blue skies ahead, but that might be easier to say for a company that doesn’t have any projects currently under construction. In the middle is Hudson Hooks, whose company JLB Partners is developing the Village at Buckhead apartments. Hooks is confident that we’ll reach a point of overbuilding, but the best positioned properties will maintain their standing. So while it’s exciting to see cranes popping up around town, let’s not get crazy, okay?
· Concerns of overheating in Atlanta's apartment market [AJC]