Multi-family development has steadily grown to reach today’s pre-crash average of 330,000 units each year. Coupled with America’s slowest population growth in 70 years, the time seems ripe for the renewal of the nation’s multi-family housing stock.
That, however, is not the case. In fact, the U.S. could soon face an apartment shortage due to the aging of the existing multi-family rental stock. While development is booming in some large metros, this mostly accommodates migration trends to large urban centers. New projects tend to concentrate on the high-end market, and typically does not replenish moderate-income housing removed from the stock due to obsolesce.
According to the Census Bureau’s 2012 American Community Survey, close to 60 percent of America’s rental properties with 20 or more units were built before 1980. Additionally, over 50 percent of affordable to extremely low-income units are upwards of 50 years old.
Read more...Multi-Family Development | The Balance Sheet - Yardi Corporate Blog
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