The Crane Migration: Builders Finally Take a Siesta

For the past three years, the unofficial state bird of Texas wasn’t the mockingbird—it was the tower crane. But recent multifamily permit figures show developers are finally tapping the brakes. High construction financing costs, coupled with tighter regional bank underwriting, have brought new groundbreakings down noticeably.

While the record deliveries of the past cycle will take several quarters to fully absorb, this supply contraction signals that the bottom of the rent-softening curve is coming into focus. Asset managers and owners are exhaling a collective sigh of relief as supply curves begin to flatten toward historical equilibrium.