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.

1. 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.