Enter your email address for weekly access to top multifamily blogs!

Rentyltics | Apartment Intelligence

I would like to welcome everyone to the Rentlytics blog. This blog will be used to write about many different industry related topics over the coming months and years. We will always try to create great, original content that will help our industry continue to promote best practices and innovation.

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.

What Does the Multifamily Forecast Look Like Leading Up to 2020?

b2ap3_thumbnail_What-is-the-Multifamily-Forecast-Leading-Up-to-2020.jpg

With all the popularity that multifamily has seen in the last few years and the recent news that construction of multifamily buildings with five or more units has seen a 10% boost this year to now total 35% of the U.S. market’s total units constructed, we thought it might be interesting to take a look at this current trend and what it means for the multifamily industry in the next half decade and beyond.

When looking forward at what we see coming to the multifamily industry in 2020, we first take inventory of the changing events that have brought us to where we are today.

For example, after the struggles that came about by way of the housing crisis, many long-time and would-be owners saw their attitude towards the dream of homeownership change.

For many young and near-retirement aged adults, the upheaval of the housing market left a lasting impression that has many of them questioning the real value of homeownership, especially at this stage of their lives. The sudden and total collapse of the market pulled the rug out from underneath those that dreamed homeownership to be a guaranteed stepping stone to a wealthy existence and ended up costing them everything that they had worked for their whole lives.

Demographically speaking, young adults between the ages of 20 and 34 and the older adults who are now over 60 are seeing a rapid growth in their populations. These two groups are showing more and more signs that they prefer the simple value of renting over owning.

Even with the rental market for single-family homes being the strongest it has probably ever been, the idea that today’s renters can get more “bang for their buck” from a multifamily unit–while enjoying a home that requires less maintenance and comes with more luxury amenities–is seen as a winning proposition.

In addition, as we’ve seen increased community support through shopping local and an increased focus on conserving energy through green efforts, a lot of what today’s multifamily communities offer is seen as more desirable: from their location within the city that is closer to most people’s places of employment to the fact that these communities are a walkable distance to the places renters want to frequent during their off time like boutiques, fresh grocers, and hip new bars and restaurants.

It is in these additional factors that we can get a look at what’s in store for the year 2020. It’s on these ideal foundations that multifamily developers will have to adjust to and cater to in the coming years, as this way of life becomes more ingrained as the norm.

Moving forward, we can expect the influences of both the millennial crowd and the retiring generation to continue fueling change and the explosion of these two specific populations to warrant the strong growth in multifamily construction up until the year 2020.

Based on current population trends,  this push will begin to taper off in 2020, especially for this younger demographic, and will see almost no additional growth in the decade that follows.

Experts do cite, that in the decades following the year 2020, that we will see some changes take place as older adults pass on and the young adults get married, have children, and then begin to migrate back towards the single-family market to raise their families.

Do you have any predictions about the multifamily industry in the year 2020? If so, please feel free to share them with us in the comment section below.

Rate this blog entry:
0
 
This comment was minimized by the moderator on the site

The real estate industry is worth looking into. Those in this industry should be prepared for the coming years and should understand that customer service shouldn't be just an option. It's going to become better years for this industry so it's best to be prepared.

  Jeraline Reynoso

Comment Below

  1. Posting comment as a guest. Sign up or login to your account.
Attachments (0 / 3)
Share Your Location
With all the growth the multifamily industry has seen in the last few years, it was inevitable that we’d eventually see the trend move out from the downtown, urban neighborhoods and onto the wide open hustle of suburban America. According to the U.S. Census Bureau, the shift in demographics from urban to suburban can be seen in the data being collected. Even with multifamily housing being the cornerstone of the current housing market and the fact that a majority of these projects...
If you were to ask any apartment hunter with a pet about their experiences trying to find a pet-friendly accommodation, chances are they’ll tell you how difficult it can be to find rentals that accept pets.   Apartment searching for pet owners can be particularly difficult. With so many people owning pets, one would assume that rental property owners would be more inclined to cater to tenants with pets, but this often isn’t the case. Rentals that do not allow pets can actually be eliminat...
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...