Chart Of The Week – December 4th 2023
Chart of the Week – December 4th 2023
Weekly New Construction Cancelled (Units)
Higher borrowing costs and construction costs have hurt the development market throughout 2023. The historically high levels of current construction have also led to a major slowdown in new projects breaking ground. Developers are now cancelling projects at a steady clip nationwide. Over the past six months an average of 1,266 units per week have been cancelled, mostly coming from the planning phases. Few if any existing construction projects will be cancelled once they break ground, however, I expect more projects to be cancelled and abandoned in the coming months. While we are in the midst of a 4 decade supply boom, once this wave delivers, we will likely see new supply retreat well below recent levels from before COVID-19.
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