We’re excited to share some great news for the apartment industry, courtesy of information from the National Association of Home Builders (NAHB)! According to panelists at the NAHB’s recent International Builders’ Show in Las Vegas, demand for apartments is expected to continue to increase over the next few years, strengthening an industry that has already been performing well in recent years. At Arcadia Run, we’re very happy to be a part of this incredible industry, and are proud to provide our residents with more features and finishes than they’d ever expect in such a spectacular location.
The multifamily housing market – which includes apartments and condominiums – has made significant improvements since 2009, when there were 82,000 multifamily housing starts. In 2013, that number jumped to an impressive 340,000 multifamily housing starts. The strength in the market is only expected to increase, with 363,000 multifamily housing starts being predicted for 2015.
According to Chief Economist at NAHB, David Crowe, theses impressive numbers come from three main sources:
· The “echo-boom” generation – also known as millennials or generation Y – continues to increase in size and fuel the demand for apartments. Since this demographic will increase in the next few years, even more demand can be expected. Additionally, pent-up demand from this generation, who will be moving out of mom and dad’s house over the next few years, is expected to increase the need for more apartments.
· Young adults continue to prefer renting to homeownership, a trend that’s increased since 2004 and is predicted to continue. Issues such as tight underwriting standards for mortgages, lower entry salaries and lower credit scores have led more young adults – as well as some older adults – to continue to prefer renting to owning a home.
· Though the apartment rental industry has been performing strongly for the past several years, it was affected by the housing collapse and production of multifamily housing decreased significantly. When the apartment industry began to pick up speed in 2011, the increased performance was partly due to the market getting back to the normal flow.
Additional good news from the NAHB and the Census Bureau concerning the apartment industry is that rental vacancy was at a 12-year low in the fourth quarter of 2013, when the most recent data was available. NAHB points out that this tightening rental market reflects an improving economy, highlighting the importance of the apartment industry in not only the housing market but the overall economy as well.
Low rental vacancy rates and a continuing strong demand for multifamily housing are both excellent indicators of a healthy apartment industry, and at Arcadia Run, we certainly appreciate the benefits of being a part of this market. We look forward to being able to help sustain this projected increased in demand for apartment hunters in the Washington, D.C. metro region, which continues to be desirable area in which to live.
At Arcadia Run, we don’t just give our residents a place to rent, however – we offer exceptionally finished apartments, with nine-foot ceilings, extended windows and expansive kitchens with granite countertops, in an incredible location in Manassas, Virginia. And there’s even more to look forward to this year at Arcadia Run with the planned completion of amenities such as a swimming pool and fitness center in our community. Not only are we thrilled about the outlook for the apartment industry, but we are also thrilled for the future of Arcadia Run – and we can’t to show you what’s in store!
SOURCE: National Association of Home Builders, Business Insider