New apartment construction can hurt your rental income, increase vacancy rates, and drive tenants away from existing multifamily properties. But why does this happen, and which apartment buildings are most at risk?
In this episode of Strategy Saturday (SS289), Charles Carillo explains how new apartment developments impact existing Class A, Class B, and Class C properties—and what multifamily investors and property owners can do to protect their rental income and occupancy rates.
When hundreds of new apartment units enter a rental market, developers often attract tenants with aggressive leasing incentives, including free rent, waived security deposits, and reduced fees. These concessions can create a ripple effect throughout the local multifamily market, forcing existing property owners to compete harder to retain tenants.
In this episode, you'll discover:
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Why new apartment construction can increase vacancy rates and slow rent growth.
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How new Class A developments attract tenants away from existing apartments.
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Why free rent and leasing concessions create pressure on older properties.
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How new construction affects Class A, Class B, and Class C multifamily properties differently.
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Why older Class A apartment buildings can be especially vulnerable to tenant turnover.
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How property owners can improve tenant retention, manage renewals, and protect occupancy.
Whether you're a multifamily real estate investor, apartment building owner, syndicator, or property manager, understanding the impact of new construction can help you make smarter investment and property management decisions.
Links Referenced in Episode: -
Connect with the Global Investors Show, Charles Carillo and Harborside Partners:
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