The Trend Toward Apt. Renting

NMHC president Doug Bibby said the US will need 4.6 million more new apartment units by 2030 in order to meet demand.

SAN DIEGO—Lifestyle changes, a housing-stock shortage and high homes prices have led to more people than ever—of all ages—choosing to rent an apartment rather than buy a home, and a serious apartment shortage is also in progress, speakers at PCBC told attendees last week. During the economic outlook and market overview, NMHC president Doug Bibby and Ron Witten, founder of Witten Advisors LLC said the apartment market looks strong despite some construction and investment slowdown, and demand is still high for this sector.

In his NMHC update, Bibby said the US will need 4.6 million more new apartment units by 2030 in order to meet demand; 646,000 in California and 73,000 in San Diego. This would require 325,000 units a year to be built. He added that tax reform is still a risk because sector-related changes could be used as a tax cut, and he called for transition plans to introduce any changes gradually. His organization has sent letters to President Trump and HUD regarding a rollback on affordable-housing funding regulations, and “things are moving slowly on infrastructure issues, but NMHC is staying vigilant,” he said.