New Report Highlights the Need for 4.6 Million Apartments By 2030
Digested from Globe St
New research from Hoyt Advisory Services, commissioned by the National Multifamily Housing Council and the National Apartment Association, paints a dire picture of apartment availability between now and 2030.
According to the report, the U.S. housing market will need 4.6 million new apartment homes across a range of price points by 2030. GlobeSt.com’s Erika Morphy writes that “apartment industry is quickly exceeding capacity.” Overall, nearly 39 million people live in apartments.
“In fact we can rewrite the entire narrative that the multifamily sector is in danger of being overbuilt,” writes Morphy. “The research has found that it will take building an average of at least 325,000 new apartment homes every year to meet demand; yet, on average, just 244,000 apartments were delivered from 2012 through 2016.”
While no markets have enough supply to meet demand, some metros fare worse than others. Paula Munger, NAA’s director of Industry Research & Analysis told Morphy that Raleigh, will need 69% more supply over the next 13 years.
“Charlotte, Austin, Vegas and Orlando — they will need 40% or more [new supply] over what they currently have,” Munger says.
On top of the need to deliver new projects, the industry also has 11.7 million aging apartments in need of renovation. These construction and renovation projects will provide a boost to the US economy, according to NMHC Director of Research Caitlin Walter. Already, apartments and their residents contribute $1.3 trillion to the economy and generate about 12.3 million jobs annually, according to the NMHC.
To learn more about Vision 2030, visit www.weareapartments.org.