Tuesday, January 12, 2016

Stagnant Homeownership Rate Likely Means Decades of Strong Demand for Apartments via NREI

Over the next two decades, demand for rental apartments will likely continue to be strong, if current homeownership rates remain where they are or improve only modestly.

The homeownership rate and how low it will remain going forward is one of the biggest questions hanging over the apartment market. As the rate continues to drop, more households move into rental housing, keeping apartment rent growth high and vacancy rates low. Experts disagree on whether the homeownership rate will continue to fall as it has since the housing boom, or stabilize and even modestly recover. Any of these potential outcomes, however, should still be enough to produce strong demand for rental apartment units not just in the next few years, but through the next decade and beyond.

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