Quote:
Originally Posted by pitmeo
Could someone explain to me what exactly is meant by a "development cycle"?
I'm new to following developments and have heard this term about Atlanta's development cycle used many times in this forum. How long do they typically last? How much time passes in between them?
|
Here is a link to a really bad infographic I found quickly to help you visualize and understand the basics of a real estate cycle:
http://www.thurstontalk.com/wp-conte...ants-group.jpg
Because of the nature of real estate it is hard to have a balanced market. Naturally, over supply is going to occur due to the timeline it takes to bring new product to the market. And besides the inefficiencies inherent in the real estate market, the economy itself is cyclical which helps dictate the ebbs and flows of demand for product types.