Multifamily Housing Fast Facts

There are around 22-24 million apartment units in the U.S. in buildings with five or more units (NMHC).

 

Institutional investors control about 35-40% of this market (roughly 8-10 million units).

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Non-Institutional Multifamily Market:

• The remaining 60-65% of the market (about 12-14 million units) is owned by smaller landlords and private investors.

• However, a significant portion of these non-institutional units are professionally managed by third-party property management firms. Estimates suggest that about 50-60% of smaller multifamily properties (typically 5-49 units) use third-party management services.

• The NMHC50 Owners control approximately 4 million units

 

Estimated Size of the Non-Institutional but Professionally Managed Market:

• If we estimate that about 50-60% of the remaining 12-14 million units are professionally managed, this suggests that 6-8 million units fall into the category of non-institutional but professionally run. ​

 

Specification

• Capital improvements specified by property owners/management 90% of the time**

• Product specification in new construction is handled by developers 76% of the time**

• Decisions are often made by teams: developer, owner, property management

 

Forecasts 

• Strong underlying demand - through 2030 multifamily we need to build 350k units per year to keep up.

• Interest rate uncertainty is a major headwind and inventory coming online in 2024 will pressure occupancy & rents in the short-term.  The supply constraints we are seeing now will keep fundamentals strong over the longer term however.   ​

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