Demographic shifts and the ongoing influence of the pandemic have brought about significant changes in the United States’ housing. Basically, there is an increased need for multifamily unit construction. A study was commissioned by the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC). Evidently, the nation is facing an urgent demand for the construction of 4.3 million new apartments by the year 2035. The study was conducted by Hoyt Advisory Services and Eigen10 Advisors, LLC. It provides crucial insights into future apartment demand across the nation.
Key Takeaways
Bridging a 600,000 Apartment Home Shortage
The pressing need for 4.3 million apartment homes includes addressing an existing deficit of 600,000 apartment homes. This shortfall is attributed to the aftermath of the 2008 financial crisis.
Affordable Multifamily Unit Construction in Decline
The study also highlights a significant decrease in the number of affordable housing units, and defined those with rents below $1,000 per month. From 2015 to 2020, there was a decline of 4.7 million affordable units. Moreover, underscoring the challenges in providing housing that’s within reach for many Americans.
Homeownership Trends
Apartment demand projections factor in a 3.8% increase in the homeownership rate. Nonetheless, this trend demonstrates the dynamic nature of the housing market, where various factors influence the choices individuals make regarding renting or owning homes.
Immigration’s Role
Immigration plays a vital role in driving apartment demand. In addition, immigration levels saw a decline before the pandemic and have remained low. However, a reversal of this trend would significantly impact multifamily unit construction demand.
Focus on Texas, Florida, and California
The study identifies Texas, Florida, and California as three states that collectively account for 40% of the future demand for apartments. Overall, they are expected to require the construction of 1.5 million new apartments by 2035. These states are crucial hubs for real estate and development.
Building for the Future
We understand the evolving landscape of housing needs in the United States. So, with a growing demand for multifamily units, we are committed to addressing this challenge head-on. Our expertise and experience in construction make us a trusted partner in ensuring that the nation’s housing needs are met.
To see our commitment to the multifamily construction sector, take a look at our ongoing projects. We’re proud to be part of the solution to address the pressing demand for apartments and contribute to the growth and well-being of communities across the nation.
Our Portfolio
Altogether, the demand for multifamily units continues to rise, and we will stand ready to provide innovative and sustainable solutions to meet the evolving housing needs of our communities. Stay tuned for updates on our projects, therefor our ongoing efforts are addressing the changing housing landscape.