The Coming Rental Housing Wave


 

Here is today’s post from co-star which echo’s what we’ve been seeing here in the Seattle metro area. Rents are up and there is increasing competition for available units. Landlords it’s time to revisit your rent strategies! For a consultation in increasing you buildings NOI and value give me a call.

 

The Coming Rental Housing Wave

Protracted Economic Distress in Housing Sector has Created Legions of Renters in New Markets and New Age Groups

 While widespread recovery continues to elude the housing sector, the apartment market has become one of the real estate industry’s — and the broader economy’s — best hopes for a return to the good old days, with robust property values attracting keen investor interest. And it has the Great Recession to thank for it.

The multifamily market is benefiting from changing demographics and consumer attitudes toward renting resulting from the growing number of financially stressed households. The increase in young and newly formed households that have decided to postpone or even reject home-ownership in favor of the lower debt and flexibility afforded by renting during these last unsettled economic years.

“It’s an exciting time to be in this growing sector where it is projected that $1 trillion in capital and 10 million additional apartment units are needed in the next 10 years as more individuals turn to apartment living,” said Freddie Mac Multifamily Senior Vice President David Brickman.

Renters now make up more than 40 million households – about one-third of total U.S. households, according to Brickman. For every 1% that the current home ownership level of 66% decreases, one million individuals become renters.

The changing demographics also show a significant increase in immigrants, 20-34 year olds, and baby boomers entering the rental market.

 

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