After several years of a straight up trajectory in the multi-family market, we are and have been at the top for sometime now. Lenders are maintaining discipline given the current supply-demand fundamentals as well as concerns over the economy in general. A key piece of that consideration is that there are ~10,000 units currently under construction or planned in the Philadelphia region and targeted for delivery through 2020-21.
So far, the market has kept pace with new deliveries with net absorption at 1,500 units over T12. The pace of new supply though is facing headwinds from a cautious lending environment combined with increasing labor and material costs, making projects more difficult to underwrite for developers and lenders. In spite of the lending industries caution, there remains a multiplicity of conventional lending options in the market.