SAN FRANCISCO—There will be no let up in multifamily housing for the next three years, specifically on California’s coasts. That is according to a video report produced by Allen Matkins and UCLA Anderson.
In the video report, which GlobeSt.com has exclusively obtained, Jerry Nickelsburg, senior economist for UCLA’s Anderson Forecast, says that economic growth drives multifamily housing, very often rental housing.
John Tipton, and attorney at Allen Matkins, says that multifamily also includes condo projects, which were hot in 2005, 2006, and 2007 but were then completely devastated. “What you are seeing now is the return in the condominium project, which maintains a very bright spot.”
But the strong demand is focused on coastal California, not the central valley or inland, says Nickelsburg. He points to the San Francisco market, which shows rental rates projected to increase, however, he also pointed out that vacancy rates will be going up as well. “In the Bay Area, there has been a surge of multifamily housing. The region has led the growth of multifamily across the state,” he says.
The information in the video is commentary based on a recent survey conducted by UCLA Anderson and Allen Matkins that showed no let up in the demand in the next few years.