The Multifamily housing industry is expected to stay strong and competitive in 2017! Though market watchers are forecasting a slight decree from the record high, return on investments will remain high.
“In a recent report from Real Capital Markets, 49% of investors polled said that multifamily remains an ideal investment in commercial real estate, and that the market doesn’t look like it will be slowing down any time soon,” according to an article in Building Design and Construction. “The National Association of Home Builders expects multifamily starts to rise to 384,000 units, or 1,000 above last year’s number. Robert Dietz, NAHB’s chief economist, believes this pace is being driven by demographics and the balance between supply and demand.”
The steady growth in multifamily housing, higher rental yields and continued high occupancy rates, make the apartment sector a profitable investment as the economic cycle continues into 2018.
The article continues, “David Brickman, Executive Vice President and head of Freddic Mac’s multifamily business, foresees a spike in renter households, spurred on by positive job growth and a stable economy. In addition, home prices are on the rise, which might cause renters to further postpone any residential purchases. And aging baby boomers continue to downsize into rental units.”
Other predictions for the upcoming year and beyond show the momentum multifamily housing sector to continue. The national vacancy rate in 2018 will have a slight increase from 5.6% to 5.7%.
The U.S. economy remains in a growth mode, fueling the multifamily and apartment housing industry. It is important to partner with a construction group who will deliver.
SWET Construction Group has a successful track record of developing premium independent and branded multifamily housing. From renovations of existing properties to new development, we offer a blend of development services to enhance the value and maximize your return for your project.
Contact SWET Construction Group for your next project in Southeastern U.S.