Multifamily Demographics Positioned for More Growth

Chris Nebenzahl

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DENVER—With expanding populations, a growing preference for renting and the majority of new jobs in the economy low-paying thus making homeownership challenging, the multifamily industry forecasts upwards of one million new renter households a year.

As a result, most multifamily experts believe the sector will flourish and prosper well into the 2020s. For example, according to the National Multifamily Housing Council and the National Apartment Association, in order to meet structural demand, apartment developers would need to complete approximately 325,000 new units annually between 2017 and 2030.

“Overall, the demand for multifamily housing remains strong and is really stable,” says Chris Nebenzahl, institutional research manager of Yardi Matrix. “There is an increase in rental rates, occupancy levels are stable and there are substantive conversations about affordable housing.”

Increase in Rental Rates

Rental rates have been steadily increasing and continuing delivery of units are at a solid pace with a rental growth of approximately 3.5%.