Tag Archives: multifamily rentals

Experts Not Concerned About Rental Housing Surplus

multifamily apartment building

The multifamily sector is not in danger of overbuilding, according to analysts.

This is because the surge of apartment construction is low only compared to relatively recent years leading during and leading up to the recession. When historical norms are examined, the current pace of construction activity remains low, National Real Estate Investor reports. When new properties come online, they are leasing quickly.

Although annual multifamily permits were up 48.5 percent as of April, new inventory is expected to be less than one percent of the total for both this year and next year, according to estimates from Axiometrics. A few markets may be exceptions, with an overabundance of eager investors and developers building more units than are required, but the national market should not exhibit such a trend.

This analysis suggests that property management companies and investors dealing with single-family rentals should continue to be in a good position to help meet the demand for rental housing. Renting may remain popular with the current generation of young adults as they age. If so, then they may consider single-family rentals as they grow older and establish families, rather than becoming homeowners.

| July 23, 2012 More