RubinBrown Apartment Stats 2017

EXECUTIVE SUMMARY

“A greater amount of new supply will be delivered to the market in 2017 but most of it will be absorbed, given continued economic growth and strong multi-family fundamentals. Vacancy rates will increase slightly, but still leave room for rent and gross-income growth.” With the millennial generation aging, the Joint Center projections point to solid growth in rental households over the next 20 years. The need for additional supply of rental units at the lower end of the rent market continues to be an issue, as affordable units are becoming harder to find.

The problem, in many cases, is that higher-income households are occupying the affordable units, putting pressure on the government to find alternatives to help low-income renters. With all of the uncertainty in Washington, the role of immigration as it relates to household growth is uncertain. If the number of immigrants allowed into the country is decreased, this could translate into lower annual household growth. Over one-third of total household growth from 1995 to 2015 was contributed by immigrants. While immigration into the U.S. decreased from 2015 to 2016, it is still above the annual average immigration figures of 2009 to 2011 by 150,000 people. The number of households that are moving continued to decline in 2016. The percentage of people changing residences in 2016 was 11%, the lowest figure in the past 40 years according to the current population survey. According to the American Housing Survey there were 5 million fewer moves in the rental markets in 2015 compared to 1997. The largest decline in households moving was for adults under age 35. Tax Reform With the prospect of corporate tax reform looming over the affordable housing industry, some of its effects are already being felt. Bank financing for affordable housing projects are being delayed causing much needed projects from being started. Once there is more clarity from Washington, financing should begin to free up for much needed affordable units. Looking Forward According to the Freddie Mac Multi-family Outlook we can expect 2017 to be another good year for the multi- family housing market.

The following is from the State of the Nation’s Housing 2016 :

“Nearly 39 million U.S. households live in housing they cannot afford.

The shrinking supply of low-cost rentals, along with potential losses of subsidized units and declines in the value of tax credits, could widen the already substantial gap between the demand for and supply of affordable housing. Meanwhile, the retrenchment in federal funding has put increased pressure on state and local governments to address the housing needs of the most vulnerable individuals.” 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.

RubinBrown Apartment Stats 2017

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