When the focus of developers shifted to urban real estate, it was based on the assumptions that millennials would prefer to rent small apartments for the foreseeable future and that foreign investors would continue to invest in the luxury market. The Orange County Register staffer Joel Kotkin reports that both of these trends have diminished, which likely spells trouble for those that invested based on these assumptions.

Kotkin points to signs of a new bubble using such cities as New York for an example:

Landlords in New York, faced with growing vacancies amidst expanding supply, have increasingly been forced to give concessions. Similarly, Manhattan’s little mini-me, downtown Los Angeles, which also has gained investment from abroad, now sees landlords offering free rent and other inducements in a market that may well be saturated.

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