Middle Market Rental Housing Is Being Ignored

But this segment is not getting the attention it deserves, according to three Washington, DC-based housing organizations. The National Multi Housing Council, the National Association of Realtors, and the Mortgage Bankers Association's Research Institute for Housing America commissioned Harvard University's Joint Center for Housing Studies to produce a report; that report, "Middle Market Rentals: Hiding in Plain Sight," concludes that this segment of renters needs the attention of policymakers in order to accommodate future demands.

"Demographic projections make it clear that we must develop a better understanding of how the middle market operates if we are going to meet our future housing needs," NMHC president Douglas M. Bibby says. "This research is the first step in figuring out how the rental sector can effectively serve that market."

As it stands right now, market-rate apartments have been developed and are being developed at a sufficient rate to accommodate current demands. Mortgage lenders have been investing to such a great extent that there is currently a wide array of options in this housing category.

"Contrary to the popular belief that almost all new construction is aimed at the top of the market, an equal number of new units are built for the middle market as for the top fifth of the rent distribution," Joint Center for Housing Studies director Nicolas P. Retsinas notes. However, as per the report, lack of attention from those local and national entities that set the rules for such development projects will leave the middle market sector scrambling in the not too distant future.

But it's not just the inevitable increasing need to house market-rate apartment seekers that should catch the eyes of housing officials. Middle market housing, the report notes, is worthy of policymaking attention now because these properties will ultimately make it down the ladder to the low-income housing market as they age and newer properties come into play.