Recent trends in the construction industry indicate a continued expansion of multifamily housing construction across the United States. Industry expert Bryan Carlock, Jr., a U.S. real estate practice leader for consulting firm PwC, expressed some expectations for the multifamily housing construction sector in 2015 in a recent interview with National Real Estate Investor.
- Millennials will gradually move into the housing market – The sluggish economic recovery has restricted many young adults from the housing market. Many carry heavy student loan debt and have not advanced far enough into their careers to be able to afford a home. As the economy continues to recover and include millennials, projections are that many millions of these first-time buyers will enter the market for multifamily construction.
- Housing affordability will continue to limit some buyers – A shortage of affordable family housing will continue to limit the number of buyers who are able to enter the market.
- Affluent customers will be unable to sustain the industry – Much new construction in this sector is being aimed at affluent consumers, many of them from outside the United States. This demographic won’t be able to sustain the multifamily housing construction industry for much longer. Foreign investors are increasingly likely to be left with unsold or unrented units, while the number of foreign homebuyers may not have been as deep a pool of buyers as once believed.
- Multifamily housing will continue to serve two important demographics – Both millennials and older baby boomers are expected to drive demand for multifamily housing in both urban and suburban settings. Millennials often buy or rent near their jobs in urban centers, while downsizing baby boomers may want a smaller living space with better access to services and amenities.
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