Another factor is the retail, office and industrial developers are still going strong. My brother-in-law just transitioned from working for a residential developer to a commercial developer. He’s a construction supervisor.
Those markets entered into the upswing 3 or 4 years after residential got going, so those developers are lagging on slowing down to meet the demand. Office and industrial vacancies are going to go through the roof before these guys stop building. That’ll lead to lower rents and subsequently to lower pricing. I fully expect the commercial sectors to unravel a lot faster than the residential sectors.
