Written by | Ryan Rilee
I think the question we are secretly (or not so secretly) asking ourselves is when does it end? When do we build a building or even a single apartment ‘too far’ and we begin to see the apartment bubble pop just like the housing bubble of 2008?
We recently saw a developer build a property (from the ground up, by the way) and put it on the market for sale before it was even complete. Is that a statement of belief in the market or disbelief? Is it in the hopes that a buyer from a larger market will come along or is it a recognition that the end of values going up and up and up is over?
I’d be lying if I said I knew. I am not sure anyone knows.
While I see market reports saying that unmet demand still exists, I also know that that behavior is fickle and demographic preferences shift, and when they do, so will the demand for apartments.
But, at least anecdotally, it still feels like the fundamentals are still good for the construction of apartments. As long as the city itself continues to improve and advance, then apartments will be coming along for the ride. A ‘Richmonder’ in 2015 has a completely different relationship with the City’s core than a Richmonder did in 1989 … and that is a good thing.
So every time I see a cool new business open in one of the renovated warehouses of Shockoe, Manchester or Scott’s Addition, it only strengthens the demand for housing nearby.