RubinBrown Apartment Stats 2014

Executive Summary

Conclusion Overall, the multifamily housing market is primed to perform strongly into the coming years. Economic and demographic indicators point towards a solid, healthy market with continued demand and investor support. With the industry’s success experienced in these last years, it is important not to lose sight of looming threats related to pending legislation not only on immigration reform but, tax reform as a whole that, in the past, has looked to remove key subsidy programs essential to the industry. Despite the strengths of the industry’s mission and overall community impact, it cannot be certain that Congressional pressures won’t dramatically alter the industry’s future outlook. RubinBrown invites you to utilize this study as a development and management tool to compare your financial operations to the operating results of your peers. This study also provides sound comparable data to utilize in formulating an acquisition model. Like all compilations of data, it will be most useful when carefully and properly interpreted. We sincerely thank everyone who took time to participate in RubinBrown’s survey.

Perhaps one of the more significant issues facing the industry is its aging housing stock and what its role is in future years. In fact, the 2012 American Community Survey published by the U.S. Census Bureau indicated that roughly 60% of U.S. rental properties with 20 or more units were built prior to 1980. It is clearly evident that demand remains strong for multifamily housing and yet supply has lagged behind for quite some time. New construction can only do so much to reduce the gap between supply and demand. And with anticipated increases in rental populations in the future, quality affordable housing could be difficult to find in the future without additional focus on current housing stock through renovations and modernizations. In addition to possible increases in renter population and aging inventory, immigration reform is looming on the horizon for the apartment industry. Again, according to the American Community Survey, most immigrants live in rental housing complexes and they also are key components in building and operating these complexes. Without consideration for all stakeholders, Congressional reform could enact restrictions that create negative consequences for the apartment sector as a whole and result in an inability to meet the country’s housing needs.

2 | RubinBrown Apartment Stats 2014