Barring an economic meltdown—or continued stagnancy—2012 is on track to be a great year for multifamily. That was one of the points speakers agreed upon at the National Multi Housing Council’s 2012 Apartment Strategies Conference yesterday. The conference immediately preceded NMHC’s Annual Meeting, which drew over 2,100 attendees to the Boca Raton Resort & Club here.
In the opening session moderated by Mark Obrinsky, NMHC’s vice president of research, Jay Lybik, vice president of market research for Equity Residential, and Ron Witten, president of Witten Advisors, discussed what’s next for apartment recovery.
The decline in the homeownership rate has benefited the sector, but not to a great extent. These days, it’s demographics and household formation that are driving demand for apartments. And even if the for-sale housing market improves, the ownership rate likely won’t hit the 69% peak again but rather, stay in the 64% to 65% range. Additionally, young adults—especially single women—are putting off marriage and home purchases in favor of renting.
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