A Look at Factors Leading to Multifamily Growth
Digested from The Shift Toward Renter Nation in Property Management Insider (9/1/16) by Blackwell, Tim
Understanding what todays residents and potential residents want in an apartment community will be critical in keeping occupancy rates at their historic highs.
It can be helpful to take a step back and look at how the nation reached this period of multifamily-housing strength.
After the housing crash in 2007, former homeowners entered the apartment market at the same time a large percentage of millennials were first entering the market. In addition, baby boomers looking to downsize became another increasing demographic in apartment communities. This influx of apartment residents was renting out of both necessity and preference.
As the country came out of the recession, apartment living held its appeal. Since 2008, the total value of home mortgages is down 12 percent; loans to multifamily developers over this period have increased by approximately 36 percent. In addition, apartment construction has outpaced single-family construction.
Now, the question is: How can this knowledge help property managers understand potential residents so they can better attract and retain them?