The latest Triad Business Journal features an article about Lomax Construction’s foray into the apartment market, and consequently addresses the possibility of over-development in the Triad:
Sterling Kelly, CEO of Burkely Communities, a multifamily management and development company in Greensboro, said he wasn’t surprised that Lomax was pursuing the apartment market more aggressively.
“Other sectors of the real estate market continue to struggle,” Kelly said. “The apartment sector is healthy. That’s where the dollars flow.”
While the economics work for rental housing now, Kelly thinks that the apartment market be may become overbuilt in time.
“It’s part of the cycle,” Kelly said. “In any industry, there is musical chairs. When the music stops, someone is going to be left standing.”