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The Coming Rental Housing…

by admin on November 7, 2011

While widespread recovery continues to elude the housing sector, the apartment market has become one of the real estate industry’s — and the broader economy’s — best hopes for a return to the good old days, with robust property values attracting keen investor interest. And it has the Great Recession to thank for it.

The multifamily market is benefitting from changing demographics and consumer attitudes toward renting resulting from the growing number of financially stressed households. The increase in young and newly formed households that have decided to postpone or even reject homeownership in favor of the lower debt and flexibility afforded by renting during these last unsettled economic years.

“It’s an exciting time to be in this growing sector where it is projected that $1 trillion in capital and 10 million additional apartment units are needed in the next 10 years as more individuals turn to apartment living,” said Freddie Mac Multifamily Senior Vice President David Brickman.

Renters now make up more than 40 million households – about one-third of total U.S. households, according to Brickman. For every 1% that the current homeownership level of 66% decreases, one million individuals become renters.

The changing demographics also show a significant increase in immigrants, 20-34 year olds, and baby boomers entering the rental market.

“The bottom line is that the multifamily market is poised for growth due to strong demand, healthy fundamentals, and limited supply,
” Brickman said. “These trends have renewed interest in the sector and investors are returning as evidenced by an increase in acquisition and refinancing activity.”

Read More About “The Coming Rental Housing…” topics include:

* Another 1.4 Million Renters This Year Alone

* Apartment Development Ramps Up as Demand Swells

* Rents, Vacancies Benefiting from New Demand

* States with Opportunities

* Unmet Demand for Middle Aged

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