With some analysts warning that multifamily will soon reach a point of over saturation due to the significant amount of new product slated for delivery in the next couple of years, it may seem as though the sector has lost much of its investment potential. However, once we examine the demographic factors that are fueling demand for multifamily supply, it is evident that this market will remain strong in the immediate future and beyond.
Even with thousands of multifamily units currently in the pipeline, demand continues to outpace supply by a vast margin. The CoStar Group, a provider of commercial real estate research and information services, forecasts that more than 203,000 new units combined will be delivered to the market over the course of 2012 and 2013. Yet, even this tremendous uptick in development will not be enough to meet the substantial demand for product, which is being driven by a burgeoning pool of renters nationwide. Hundreds of thousands of new renters are pouring into the market due to recent demographic shifts and economic trends.
Read more...Multifamily Marches On via Multihousingnews.com
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