DALLAS — Multifamily development in the United States has been on a tear over the last five years, increasing competition for renters and making lease renewal rates a casualty of war. According to an August report from rentcafe.com, American multifamily developers delivered about 318,000 new units in 2017, more than double the deliveries from five years earlier. New multifamily construction between 2014 and 2016 averaged about 275,000 new units per year. That’s more than double the yearly average of 136,000 units per year that were delivered during the down years of 2011 through 2013. In addition, according to the National Apartment Association (NAA), the U.S. will need to add about 4.6 million new units by 2030 to keep up with demand. In most urban markets, this pace of development has either led to concessions or discounts on rent. This problem is compounded by the fact that in high-growth markets, renters usually have access to newer, competing multifamily product within a few miles. So long as they’re willing to move, renters can in theory receive new rounds of concessions from year to year. To recoup income lost from concessions, as well as to post strong occupancies if a property is put …
