A drop in homeownership rateswill fuel a significant increase in demand for rental housing overthe next five years, according to a study released by apartmentproperties acquisition and management company MiddleburgCommunities.
The June 11 report projects adecline in U.S. homeownership to 62.1%, the lowest rate in morethan 20 years, before a partial recovery to 63.6% in 2025.Depending on the effects of the recession, the demand for rentalhousing will increase somewhere between 33% and 49% over that timeperiod, the report concludes.
"While this shift is unlikely tocause rapidly rising rates in the near-term, it will contribute tothe resilience of the rental housing industry through the currentdownturn," the report said.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
