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Pent-up Demand & Strong Demographics Fuel Investor Interest in Multifamily Sector

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With rents increasing in the past 2 quarters, and the national vacancy rate dropping from 7.8 to 7.1% in Q3, the multifamily sector’s imminent recovery is upon us. The “pent up” 35 and under population forced to shack up with friends and family during the recession are now seeking their own apartments in droves. In the next few years, the strongest demand for apartment units will continue to stem from echo-boomers, a group of 70 million 20-34 year olds projected to grow by another 3.2 million in the next 2 years. While investor interest has piqued, developers were forced to scale back on construction in the past year for obvious reasons. The stage is set for new construction in the upcoming year, especially in supply-limited areas.  Government sponsored enterprises such as Freddie Mac and Fannie Mae can expect other financing providers to enter back in to the game as the market recovers. Read the full story on National Real Estate Investor online.

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