Rental market ‘sweet spot’ driven by demand from millennial and baby-boom generations.
SANTA BARBARA, CALIF., Dec. 9, 2015 – A new research report by Yardi® Matrix concludes that the robust demand for apartments that accompanied the rebounding U.S. economy is likely to continue for another decade.
According to the report, demand for rental properties will be driven by baby boomers, who are renting in increasing numbers as they approach retirement, and millennials, who represent the nation’s largest age group and are less likely than previous generations to own homes.
“The U.S. multifamily market is in a sweet spot. Occupancies are at or near all-time highs in most markets. Rents are rising at almost unprecedented levels,” the report states, noting a cumulative 20.2% increase in rents between January 2011 and September 2015.
“This report shows a compelling need for apartment supply growth over the long term, which should give all of us in the industry a measure of confidence in the future. Obstacles to prudent supply growth at the local level are as much a concern as access to capital, the traditional driver of supply,” said Jeff Adler, vice president, Matrix.
The full report, titled “Multifamily’s Robust Demand,” can be accessed here.
Yardi Matrix is a business development tool for brokers, sponsors, banks and equity sources that underwrite multifamily investment transactions.
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