RubinBrown Apartment Stats 2016

EXECUTIVE SUMMARY

Accessible units have also been in short supply. Only about 1% of all rental units offer no-step entry, extra-wide halls and doors, single-floor living, lever door handles and accessible electrical controls. Many of these units are not affordable to elderly and disabled households because of the cost of rent. Renters are staying where they are in record numbers. According to data from property management software provider RealPage, renters who renewed their leases hit an all-time high of 53.8%. In the mid 2000’s the figure was closer to 45%. It is noteworthy that the renewal rate has been rising steadily since 2010. This rise is attributed to the high cost of home ownership, stricter standards to qualify for mortgages, millennials waiting to get married, while trying to save money and pay down student loan debt. Renters that would like to move are having difficulty finding units in the neighborhoods or at price points that they are seeking. Conclusion Demand for multifamily rental housing remained high in 2015 and was able to absorb most of the newly completed supply. Vacancy rates remained low while rents have continued to increase. The multifamily rental market will continue to grow, backed by the steady economy.

According to the Freddie Mac Multifamily Outlook we can expect 2016 to be another strong year for the multifamily housing market. “Favorable demographic trends and an improving economy will generate robust demand for multi-family properties. Even if the economy experiences extended low oil prices or slow near- growth over the next year, most multi-family markets will continue to perform above average.” 2016 should be another good year for those looking to focus their investments in the multifamily rental housing market. Although the amount of capital invested in multifamily rental housing has decreased slightly due to the slowing economy, it is still one of the top safe investments. The low vacancy rates in the industry are not expected to go any time soon. Rent growth will remain strong in 2016, but will not likely match what was experienced in 2015. 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.

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