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About Us: Rentlytics provides deep analytics for apartment property owners and managers. Through Rentlytics, stakeholders can view and analyze their property operational and financial metrics more effectively and identify issues more quickly through our Apartment Intelligence platform, resulting in increased revenue and reduced expenses at each property across your entire portfolio. Connect with us in our LinkedIn Group Multifamily Data Experts or email us at [email protected] for a demo.

Multifamily Takes the (Economic) Wheel

When looking at all the new development taking place in our nation’s multifamily industry, it seems that most markets are seeing not only growth in their local communities because of all the new construction, but an emerging trend in which multifamily is actually taking the lead in kick-starting local economies.

It’s a trend that is beginning to show us just how important a role multifamily plays in our local communities. A role that goes beyond the demand for new rental units and becomes a key catalyst that’s fueling the other sectors of our economy.

We know that those looking to buy a single-family home in the current market are finding that they have limited access to available credit and it’s forcing them to reconsider purchasing for the time being and it’s fueling the rental market, but did you know that multifamily development is responsible for leading the recovery in the residential sector and  boosting the growth we’re experiencing in the construction markets?

According to recently released U.S. Census data, permits for new housing construction saw an 8% boost in April 2014 with a majority of those permits being issued for multifamily structures that are planned for five units or more and overall multifamily construction was up 32.5% year-over-year in the first quarter of 2014.

With all these new communities coming together, the concentration of new residents means that existing businesses in the these areas are seeing a boost in new customers.  This translates into a need to hire more people to service the influx of new clientele, which then attracts new workers to the area as well.

According to the National Association of Realtors, it’s in this trend that multifamily is also responsible for helping to bolster a commercial rebound as well.

In an area experiencing population growth, new residents are going to expect that they can get their specific needs and desires fulfilled in their neighborhood. When it comes to particular demographics like the younger millennials or older baby boomers, new entrepreneurs are looking to capitalize on opening microbrewery bars, hip natural food marts, or drugstores.

Communities are places where people come to live, work, and play. Most of us earn our livings, pay our bills, and spend our leisure time all for the most part in our local community. In the end, multifamily communities are just that: hubs of these new communities.

How is your local multifamily market responding to all the new construction we’re seeing nationwide? Is your local market seeing something else? If you have something to add to the conversation, please feel free to do so in the comment section below.

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