The Southeastern United States has a high demand for new multifamily housing. According to a new study commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), the Nation faces 600,000 apartment deficit, 4.7 million fewer affordable apartments.
Key findings of the study
Shortage of 600,000 apartment homes. The 4.3 million apartment homes needed includes an existing 600,000 apartment home deficit because of underbuilding due in large part to the 2008 financial crisis.
Loss of affordable units. The number of affordable units (those with rents less than $1,000 per month) declined by 4.7 million from 2015 to 2020.
Homeownership. Apartment demand also factors in a projected 3.8% increase in the homeownership rate.
Immigration. Immigration is a significant driver of apartment demand, and levels tapered before the pandemic and have remained low. A reversal of this trend would significantly increase apartment demand.
Texas, Florida and California. These three states account for 40% of future demand and will require 1.5 million new apartments by 2035.
“The lack of available housing is holding our country back. Whether it is a multifamily residence, duplex or single-family home, we need a massive supply of new for sale and rental homes—including millions of new apartments by 2035,” said NMHC President and CEO Doug Bibby. “Making sure everyone has access to quality, affordable housing is a bipartisan issue, and the industry stands ready to do its part to help create the 4.3 million new apartment homes our country needs.
All the signs are pointing to a solid growth in the Multifamily housing market. Rental units are in high demand and rents are growing at a sustainable level. Both are positive signs for developers and investors.
Whether it is new construction or an existing property, today’s renters expect cutting edge technology. Before you invest in remodeling and upgrades in your multi-family housing, think about the renter and what appeals to them.
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