RubinBrown Apartment Stats 2018

EXECUTIVE SUMMARY

Additionally, there is tremendous demand for affordable housing among the nation’s 15.5 million very low and extremely low-income households. Conditions in the affordable market will continue to remain strong with strong demand and diminishing supply. Conclusion In 2017, demand for multi-family rental housing remained high leading to most of the newly completed supply being absorbed. Vacancy rates remained low. The multi-family rental market will continue to move forward and grow, backed by the steady economy. According to the Freddie Mac Multi-family Outlook , unemployment fell to under 4% in the first quarter of 2018. The strong market continues to build household formations. Approximately 1 million new households were formed during the first quarter of 2018. According to Realpage, apartment absorptions are healthy at the national level, averaging 300,000 units. According to the Freddie Mac Multi-family Outlook , multi-family property prices increased 10% during 2017. Apartment investments continue to provide stable and safe returns for investors, which continues to boost property prices. 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.

10.5 million new households in 2012 – 2017, which is 1.5 million more than in the previous five-year period. The millennial generation will continue to lift household growth for years to come. While the number of young adults impacting the housing demand will continue to grow, the older population is growing faster. According to projections by the Census Bureau, the total U.S. population age 65 and older will reach 79 million in 2035. This represents an increase of 31 million over the same statistic in 2015. The largest increase in the housing demand of older adults is expected to come from single-person households. A 2014 survey conducted by AARP indicated 88% of adults 65 and over want to remain in their homes as they age. The decision of older households to age in place will require additional accessible housing with supportive services. The strong demand for units is coupled with an affordability crisis. According to the State of the Nation’s Housing 2017 , only 31% of renters are able to afford the $1,550 median asking rent for a new apartment in 2017. By comparison, in 1990 41% of renters could afford the $1,064 real median asking rent for new units. Supply of low-cost units has also decreased. A Hudson Institute analysis found that 60% of low-cost units in 1985 were lost by 2013. As a result of the supply and demand imbalance, the affordable housing industry is expected to remain strong. According to the Joint Center for Housing Studies of Harvard University, the long-term outlook for rental housing demand is positive as increasing numbers of millennials form new households and older households switch from owning to renting.

RubinBrown Apartment Stats 2018

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