With strong fundamentals and economy growth, the multifamily housing and apartment industry doesn’t show signs of slowing down. Freddie Mac predicts the multifamily market will become stronger in 2019. Though there has been a very slight increase in the vacancy rate, the growth in rent continues to be healthy and demand is increasing.
“This is a reversal of the trend of slowing construction levels over the last couple of years. Despite fears of overbuilding and the slow, upward creep of vacancy, it appears that supply will remain elevated over the next few years,” according to a recent article in Housing Wire.
“Again, like many have been saying for the past year, Freddie Mac predicts that, barring a major macroeconomic event disrupting the whole economy, the multifamily industry will remain solid.”
Miami, Florida is one of the leading metro areas in the United States, leading the multifamily housing shortage with a deficit of 20,500 units.
Other markets are located in close proximity to flourishing core cities such as Atlanta, Miami, Jacksonville, Tampa, and Orlando. These sub-markets will experience a ‘spillover effect’. The demand for apartments are high and they won’t be as affected by competing new construction.
Looking forward, many factors will contribute to the construction growth. The Millennial and Gen X, have become a large client base as well as Baby Boomers, dubbed the White Tsunami.
Keeping up with industry trends and understanding the needs of demographics, will be what ensures long-term success, staying above the competition, increase traffic, reduce turnover and maximize revenue. It starts by understanding what the residents in 2017 will be looking for.
The expert management team at SWET Construction Group is proud to provide cost competitive turnkey projects. All of our projects receive continuous supervision, customer satisfaction and attention to detail, from beginning to end.