A survey revealed that most members of the U.S. multifamily industry have a positive outlook on growth prospects for the rental housing market.
Freddie Mac conducted the survey and found that 60% of respondents expect the rental market to grow over the next three to five years. It measured the participants’ perceptions based on several factors, including property development and management, building and construction, and the multifamily lender sector.
While the short-term outlook remains bright for the multifamily segment, the survey also showed a more negative attitude on affordable housing compared to the previous year. It noted that 42% of respondents have a declining optimism for rental housing. Costs such as land and construction served as the primary challenge for 40% of participants.
David Brickman, executive vice president of Freddie Mac Multifamily, said the poll showed a general agreement on growth expectations for the multifamily business due to growing demand. However, this prevents many families in having more options for low-cost properties, which causes a need for more investments in affordable housing.
Multifamily residential construction starts in July rebounded 8% from June, following declines in previous three months, according to a Dodge Data & Analytics report. The higher number of projects that broke ground in July somehow aligned with the Freddie Mac survey’s positive outlook for the sector.
Even if growth is likely soon, 51% of the survey’s respondents believe that energy-efficient homes are necessary. An increase in affordable housing supply ranked next on their list of improvements, followed by resolving the housing needs of senior citizens.
Business remains positive for the U.S. multifamily industry. At the same time, the sector should find ways to invest more in cheap properties since not everyone can afford to pay a hefty price for a home.