Multifamily Housing Fast Facts*

State of the Industry

Facts & Figures:

• Renter Occupied Households make up 37% of the US total

• There are 21 Million Rental Units (5 units +) : Highly Fragmented (NMHC)

• Value-add investment (renovation and repositioning) continues to thrive

• Multifamily remains favored asset class for institutional investment

• Affordable housing is also become a favorite among institutional investors with ESG initiatives and political tailwinds.

 

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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