2014 shows rise in demand for multifamily housing says giro kastimbrakis
DESCRIPTION
The National Association of Home Builders (NAHB) reported that the demand for apartments will increase over the next few years. Panelists reported these findings at the International Builders’ show in Las Vegas. Multifamily home and apartment building construction is strong, but the NAHB does not anticipate the demand to cease until around 2015 or 2016 when they expect to reach sustainable levels. These findings show a sharp rebound from where the market was in 2009. David Crowe, the chief economist for the NAHB stated that they are “forecasting 363,000 multifamily housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.” There are a few reasons why multifamily housing is making such a strong comeback after the recession. The first reason is after the economic collapse, the rate of multifamily show construction slowed dramatically. Therefore, when the economy started picking up again in 2011 a lot of building was just to come back to normal levels. Another reason for the comeback is the large demand for apartments from ‘echo boomers.’ This demand will continue to increase with people born post-1980 seeking apartments and housing. Current young people are much more likely to rent throughout their 20s and beyond than their parents at the same age. Additionally, a third reason for the multifamily housing comeback is that young adults, and some older adults are now also more attracted to renting versus home ownership. This affinity towards renting is due to lower credit scores because of small entry salaries and a slow employment market, and tight underwriting standards for mortgages. All of these factors contribute to the upswing in rental housing. Multifamily housing will continue to hold its own in the market as long as mortgage rates are high and careers remain unstable.TRANSCRIPT
2014 Shows Rise in Demand for Multifamily Housing By Giro Katsimbrakis February 12, 2014 The National Association of Home Builders (NAHB) reported that the demand for apartments will increase over the next few years. Panelists reported these findings at the International Builders’ show in Las Vegas. Multifamily home and apartment building construction is strong, but the NAHB does not anticipate the demand to cease until around 2015 or 2016 when they expect to reach sustainable levels.
These findings show a sharp rebound from where the market was in 2009. David Crowe, the chief economist for the NAHB stated that they are “forecasting 363,000 multifamily housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.” There are a few reasons why multifamily housing is making such a strong comeback after the recession.
The first reason is after the economic collapse, the rate of multifamily show construction slowed dramatically. Therefore, when the economy started picking up again in 2011 a lot of building was just to come back to normal levels. Another reason for the comeback is the large demand for apartments from ‘echo boomers.’ This demand will continue to increase with people born post-‐1980 seeking apartments and housing. Current young people are much more likely to rent throughout their 20s and beyond than their parents at the same age. Additionally, a third reason for the multifamily housing comeback is that young adults, and some older adults are now also more attracted to renting versus home ownership. This affinity towards renting is due to lower credit scores because of small entry salaries and a slow employment market, and tight underwriting standards for mortgages. All of these factors contribute to the upswing in rental housing. Multifamily housing will continue to hold its own in the market as long as mortgage rates are high and careers remain unstable. Demand for apartments and rental units remain high and the market shows great promise for continued expansion in 2014. Giro Katsimbrakis has twenty years worth of real estate industry experience. He began as a leasing agent for Kiska Developers in New York City, and quickly worked his way up the company ladder to Director of Sales. After bringing the company out of the red and expanding its office to over twenty agents, he started his own commercial and residential real estate company, East River Properties. After taking over the Las Vegas and Arizona markets, Giro Katsimbrakis relocated to the Dallas/Fort Worth area and founded DPW Properties, which he is currently in the process of expanding nationwide. Throughout his long and successful career, Giro has rehabbed over four hundred properties, and bought and sold millions of dollars worth of real estate.