Economy Insights

May 1, 2022

Multifamily Demand to Moderate Over Next 10 Years

Multifamily demand will moderate its growth through 2035, according to a soon-to-be-released study from the National Multifamily Housing Council. The new study predicts that demand will rise 25% to 30% below previous forecasts. The reduced projection is due to the likelihood of a major recession, flat population growth and low immigration levels. Real estate finance professor Norm Miller presented this forecast at the recent MHNC Research Forum in Denver. According to Professor Miller, inflation and […]
March 5, 2022

Employment Up in February 2022

The employment data for February revealed that hiring rebounded in February after a slow start to the year. According to the BLS, employers added 378,000 new jobs in February, driving the unemployment rate down to 3.8%. These gains were higher than the 440,000new jobs predicted by economists. The job gains were widely distributed across industries, with healthcare and hospitality leading the way. In a positive sign for the real estate industry, the construction industry added […]
January 17, 2022

Multifamily Market Remains Strong

As we start 2022, the multifamily real estate market remains strong. In 2021, the market saw unprecedented growth in rental rates and also in investor demand. Market research from Apartment List showed that rental rates increased 17.8% in 2021, a record shattering rate of growth. Investors were bullish on multifamily properties, due to the sector’s resilience when compared with other types of commercial real estate. Although these trends are likely to continue in 2022, they […]
November 4, 2021

Apartment Rent Surge Slows

Throughout most of 2021, apartment leasing and rents surged as pent-up demand caused by the pandemic exploded onto the market. However, the rental rate growth has slowed considerably, signaling that the market may have stabilized. The national rent index from Apartment List showed rent growth of 0.8% from September to October. This was the slowest rate of growth since February 2021. In any other year, a growth rate of 0.8% is a typical rate for […]
September 30, 2021

Emergency Rental Assistance Payments Are Getting Out

$2.3 billion in Emergency Rental Assistance payments were made to households throughout the US in August. These payments were sent to 420,000 households, a significant increase from July.
September 9, 2021

Commercial Real Estate Is Facing a Hiring Crunch

The commercial real estate industry is facing an unprecedented national hiring crunch. A recent survey estimated that 60% to 70% of commercial real estate companies are facing a talent shortage. Although this process was accelerated by the pandemic, there are several other features contributing to this shortage of top talent. Aging Workforce The commercial real estate industry is an industry with an aging workforce. Approximately 44% of people employed in the commercial real estate industry […]
July 8, 2021

Midyear Multifamily Real Estate Market Outlook

The multifamily real estate market looks largely positive for the second half of 2021. Rents and collections are increasing and development continues despite increased prices. Hiring experienced professionals for many jobs remains challenging, especially for Maintenance Techs and Property Managers.
June 10, 2021

Distortions in Construction Industry Jobs

Employment in the construction industry is being distorted by both the pandemic and long-term causes. Both commercial real estate and residential construction are seeing an increased demand for workers while also losing jobs.