![]() In a recent interview with Scotsman Guide, National Multifamily Housing Council chief economist Mark Obrinsky said he believes the multifamily housing market will remain strong, especially in urban centers where it has seen steady growth in recent years. Obrinsky said he has not seen any indicators that the market will retract, pointing out that rent has continued to increase for longer than expected and that as home prices increase, the market will tip in favor of renting. The increasing population in the United States also will require more home ownership and rental space, he said. Millennials, like all generations in their 20s, are more likely to rent, and the long-term trend of young families waiting longer to buy property continues to benefit the rental market. Apartment construction has finally caught up with demand, Obrinsky noted, which means rent growth should level out to solid 3 percent or 4 percent increases until the new space is leased out. When that happens, rents could increase.
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AuthorAn experienced real estate investor and co-founder of 37th Parallel Properties in Richmond, Virginia, Chad Doty has established himself as a leader in commercial multifamily real estate. Archives
January 2017
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