Multifamily Mid-Year Outlook 2014
Finding a New Normal
Despite mixed economic messages, market drivers propel the multifamily housing market forward. The economy overall continues its recovery, albeit more inconsistently than expected. The multifamily housing market has remained strong thanks to the economic recovery including an improving job market.
Here are the key takeaways from our 2014 Multifamily Midyear Outlook:
- The multifamily rental housing market is strong despite fluctuating macroeconomic indicators in the first half of 2014.
- Supply of new multifamily units is being absorbed by demand and market fundamentals are expected to remain strong over the next two years, converging towards historical averages.
- An estimated 3.9 million potential households were under-created due to the Great Recession, with young adults accounting for close to 75% of those pent-up households.
- Over the next decade, an estimated 440,000 multifamily units may be needed each year to meet the growing demand, based on demographic trends.