Multifamily Housing Likely To Slow This Year

Orlando, FL, Jan. 17, 2017 -- The U.S. multifamily housing market is likely to slow this year, according to a group of panelists at the recent National Association of Home Builders International Builders' Show in Orlando last week.

NAHB Senior Economist Robert Denk said multifamily starts data shows the sector "slowing down from recent historical highs in response to a more sustainable demand."

Vacancy rates and inflation in rents still show high production, but Denk expects multifamily production to slow modestly from its 2015 peak of 395,000 units.

"The demand for affordable rentals already outstrips supply, and that imbalance will only get worse for a couple of reasons: First, demand will increase as the millennial generation fully enters the housing market, and second, those aging baby boomers with minimal savings will be looking for housing they can afford on a budget that depends primarily on Social Security," said Steven E. Lawson, president of The Lawson Companies in Virginia Beach, Va.