Apartment construction in the Washington, D.C., area is reportedly booming – so much so that developers may have overestimated the demand, reports the Washington Business Journal.
A recent report by Delta Associates found that developers broke ground on 15,000 new apartment units in 2011, which was the highest number since the company began tracking apartment construction in the D.C. area. Despite this, the city filled 4,163 apartments in 2011, which was 1,400 less than the average yearly rate for the city.
Washington, D.C., still has one of the lowest vacancy rates – the number of unused apartments – in the country, meaning that the issue is not quite so bad. In addition, the report projects increased demand for apartments in 2012 and 2013. Delta also predicts that the construction-to-usage ratio will be back in balance by 2015.
Contractors that are working on apartment buildings will need excavators, backhoes and possibly even cranes in order to get the job done. The online auction site IronPlanet offers a way for construction company owners to purchase this equipment, often at more affordable prices than buying new. The site’s IronClad Assurance also allows buyers to view full inspection reports on all equipment before bidding.