December 06th, 2013

Trends in Multi Family Housing

Demand for apartment rentals was up 21% in 2012 according to an ASID report.  Rental market is high in demand and will continue for the next 5-10 years.
Several points of interest in this market are:
  

• Location - Especially seen in urban growth
• Modern amenities such as stainless appliances, granite countertops
• Stylish kitchens and bathrooms
• More storage in the unit
• Added "pops" of color accents in wall paints in new colors such as raspberry, yellow, blue gray
• Young adult market is willing to pay pet rent - $25-$50 per month (major selling point!)
• There is a new appeal of renting vs. owning because of no growth in real estate over the past 10 years.
• Interest in sustainability:  Bike parking, plug ins for electric cars, efficiency in utilities and appliances, green materials such as adhesives, paints and flooring.
• Gen Y are the new market to appeal to

There is a caution of overbuilding and oversupply in this market and it appears to possibly overpriced.