WASHINGTON, DC–The multifamily housing market has beenexhibiting nothing but prolific growth over the past decade. Now as2017 comes to a close it is becoming apparent that this growth isstarting to slow, according to a reportfrom the Joint Center for Housing Studies of HarvardUniversity. As the dust settles from this era, it is alsoapparent that the rental housing market has changed considerablyand perhaps permanently, the report concluded.
In short, the apartment market is settling into a “new normal”in which nearly 21 million households pay more than 30% of theirincome for rent.
A Slowing Pace
The halcyon days for the sector were good indeed, as the reportnoted, with rental construction rebounding nearly four-fold fromthe market trough in 2009 to 400,000 units in 2015 — the highestannual level since the late 1980s.
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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.
