Are
you an owner or investor in multifamily properties? If so, you’ll no doubt be
interested in the latest multifamily trends from the National Multifamily Housing Council (NMHC).
The
good news: NMHC forecasts that 4.6 million apartments are needed at a variety
of price points by 2030 in order to meet demand. That forecast is based on
current demographic trends and household formation statistics – and bodes well
for the multifamily sector.
How
are developers meeting that demand? According to NMHC, the bulk of new
apartment construction is concentrated in a few metros and is on the luxury
side. That’s not surprising considering the rising cost of land and
construction costs. But it’s creating a challenge for tenants, many of whom are
cost-burdened.
While
rent growth has moderated in recent years, it remains strong, and vacancy rates
are hovering near record lows.
In
terms of amenities, the NMHC/Kingsley
Resident Preferences Survey found that the amenity most desired by tenants
today is reliable cell reception. After that, tenants want secure parking,
secure amenity access, a swimming pool and a fitness center. The on-site dog
spa? Not so much.
