CHICAGO -- KPMG Peat Marwick has concluded that real estate development and new construction will be at a standstill in most regions of the United States in 1992, a result of the recession and a continued imbalance of supply and demand.

The accounting firm's real estate study also suggested that two to three years will be required to work off the imbalance.

"The current recession and the scare of an economic depression contributed to a slowdown in construction and new ventures in 1991," said Roger L. Johnson, KPMG's national director for real estate. "The biggest problem in the industry today is that there is just too much unoccupied space and no demand for it."

The Few Bright Spots

The study sees some bright spots in the Southwest, aided by population growth, and in the Midwest with its diversified economy.

In the South, particularly Florida, hopes of increased tourism and business conventions may benefit the real estate market.

But in the West, the recession brought higher unemployment and a soft real estate market. In the East, the economic slowdown combined with mergers of financial institutions will have "a profound effect,' particularly in New York City, the study said.

"Until the economy improves, we cannot even begin to fill up the existing supply of office space, housing, retail shops, and hotels, let alone contemplate new development," Mr. Johnson said. "Until demand catches up, the real estate industry will continue to suffer."

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