Are you an owner or investor in multifamily properties? If so, you’ll no doubt be interested in the latest multifamily trends from the National Multifamily Housing Council (NMHC).
The good news: NMHC forecasts that 4.6 million apartments are needed at a variety of price points by 2030 in order to meet demand. That forecast is based on current demographic trends and household formation statistics – and bodes well for the multifamily sector.
How are developers meeting that demand? According to NMHC, the bulk of new apartment construction is concentrated in a few metros and is on the luxury side. That’s not surprising considering the rising cost of land and construction costs. But it’s creating a challenge for tenants, many of whom are cost-burdened.
While rent growth has moderated in recent years, it remains strong, and vacancy rates are hovering near record lows.
In terms of amenities, the NMHC/Kingsley Resident Preferences Survey found that the amenity most desired by tenants today is reliable cell reception. After that, tenants want secure parking, secure amenity access, a swimming pool and a fitness center. The on-site dog spa? Not so much.