A flight-to-quality in Connecticut

A recent article published in Apartment Finance Today cites Reis data with respect for present and forcasted apartment construction in the New Haven and Fairfield Connecticut markets. The author, Steve Witten, suggests that deliveries “should increase competition for renters and weigh on property performance in the area. Operational challenges will, in turn, drag on revenue gains and loan underwriting, creating opportunities to acquire assets at a discount through the near term.”

Still, the article states that “tight capital markets and declining revenues continue to slow investment activity…but the high barrier-to-entry, supply constrained New Haven and Fairfield markets are performing better than most other U.S. markets, and investor demand from both private and institutional investors well outweighs the current and anticipated supply.”