{"id":11483,"date":"2022-09-20T13:29:26","date_gmt":"2022-09-20T18:29:26","guid":{"rendered":"https:\/\/www.imegcorp.com\/?p=11483"},"modified":"2022-09-20T13:29:26","modified_gmt":"2022-09-20T18:29:26","slug":"new-multifamily-housing-needed-to-meet-rising-demand","status":"publish","type":"post","link":"https:\/\/imegcorp.com\/insights\/blog\/new-multifamily-housing-needed-to-meet-rising-demand\/","title":{"rendered":"New multifamily housing needed to meet rising demand"},"content":{"rendered":"
By Donovan Geske<\/span>\u00a0<\/span><\/p>\n The multifamily housing market is hot \u2013 and it\u2019s showing no signs of slowing down.\u00a0 About <\/span>4.3 million new apartments are needed by 2035<\/span><\/a> to meet the rising demand for rental housing, according to the National Multifamily Housing Council (NMHC) and National Apartment Association. That\u2019s 266,000 new units each year, in addition to the 600,000 units needed to fill the gap created by the 2008 recession. While working with our clients to provide a variety of multifamily housing options and keeping up with industry news, I\u2019ve observed three main factors creating this demand.<\/span>\u00a0<\/span><\/p>\n First, the work-from-home response to the Covid-19 pandemic created a migration out of large cities into secondary and tertiary cities, as many people were no longer commuting to work. Populations in rural and suburban areas close to larger cities increased during the height of the pandemic, according to <\/span>PEW <\/span>Stateline <\/span><\/i>research<\/span><\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n Second, existing properties are aging out. Greater expectations for amenities and prime locations are met by building new greenfield buildings that are initially designed with these expectations in mind, rather than renovating existing buildings at a higher cost. Developers look for urban infills and underdeveloped properties that can be transformed into mixed-use, amenity-rich housing that is easily accessible.\u00a0<\/span>\u00a0<\/span><\/p>\n Third, the U.S. has been underbuilt for nearly 20 years \u2013 a problem that was <\/span>exacerbated by the 2008 recession<\/span><\/a> when construction slowed for both single and multifamily housing. Though all types of multifamily housing (low-, mid-, and high-rise) are growing, there is still an expansive gap in available housing across the country.\u00a0<\/span>\u00a0<\/span><\/p>\n