In today’s housing market there are some unmistakable trends. The number of owner-occupied dwellings is dropping while rental vacancies are vanishing. Residents are finding fewer choices available to rent than at any time.
At the same time, employment numbers took a huge hit. The number of unemployed soared while companies cut back on spending and operating costs. Employment numbers have improved during the last two years, yet the actual wages paid have hardly increased.
These factors contributed to a slowdown in new construction of multifamily complexes and apartments. While new buildings have begun to be built there’s a lag time before they’re ready to rent. The construction lag helps fuel demand and, subsequently, rental rates will continue to rise for at least the next five years as the Millennial Generation continues to delay entering the homeownership market.
This huge demographic group has been slower to leave home than their parents’ or grandparents’ generations. Reasons include student debt and increasing housing costs.
This reality has powerful ramifications for the overall economy and for the housing industry specifically. As a result, property managers all across are becoming active in the possible solutions.
Working in close cooperation with local and regional housing authorities, property managers are networking to come up with viable ideas. Some are forming ad hoc task forces to make things happen. As a critically important election year approaches, property managers are also letting political candidates know that landlords, property owners, and residents are deeply concerned. Historically low vacancy rates coupled with a rising number of motivated applicants leads to shortages and rental rate inflation. Consider taking an active role in offering ideas that will benefit all involved.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.