NREI’s Special Multifamily Report Shows the Sector Will Shine Well into the Future.
During the Great Recession, the multifamily sector was the silver lining of the very large, dark cloud that was looming over the commercial real estate industry. When the single-housing market’s bubble burst, rental housing units immediately became in demand, and thanks to the economy’s gradual recovery and the arrival of the Millennial generation, who eschew single-housing in favor of renting in urban live/work/play neighborhoods, multifamily housing has continued to impress investors.
Initially, back when the housing crisis began, it was the government, via Fannie Mae and Freddie Mac, that helped to keep the multifamily market alive, but gradually over the years, lenders took notice of the fact that multifamily was not only surviving but was actually thriving. As a result, capital is once again flowing freely within the sector. And while occupancy rates and rental prices have risen, the pipeline of new housing has been lacking, so vacancy rates have dropped to all-time lows in many parts of the country.