Real estate developers are increasingly building low-amenity rental properties, which grew to 16.2% of the new construction category, up from a previous 12.2%, according to a recent analysis by CoStar. Affordability is driving this trend. In 2017, wages increasing by 2.7% while rents increased by almost 4%.
Bess Freedman, CEO of the brokerage Brown Harris Stevens noted, “Price sensitivity has never been more important to people…it’s a different market.”