Survey: US Multifamily Industry Remains Positive on Growth Prospects

US SoliderMost members of the U.S. multifamily industry believe that a growing population and rising demand will continue to provide business opportunities, according to a new survey.

Freddie Mac partnered with Hanley Wood to commission the survey, which sought to determine the industry’s outlook on several factors.

These include development activity, building and construction projects, real estate management, lending and financing for products such as HUD commercial loans, which you can get from firms such as Bonneville Multifamily Capital.

Mixed Outlook

Despite the bright outlook for the multifamily business, most of the survey’s respondents became more pessimistic about the prospects for affordable housing compared to their previous outlook in 2016.

Still, 60% of the respondents anticipate the multifamily market to grow in the next three to five years, while only 15% expects a slowdown.

Supply and demand served as the growth factor for almost 30% of the survey’s participants that expect growth, while 17% cited an increasing population for the industry’s development.

David Brickman, executive vice president of Freddie Mac Multifamily, said that “lifestyle preferences and demographic changes” mainly influence industry members’ strong confidence on the market.

On the other hand, the growing demand has further worsened the affordable housing crisis for many American families, which highlights a need for companies to invest more in low-cost homes, according to Brickman.

Affordable Housing

For investors that wish to provide more low-cost homes, there are many types of HUD commercial loans that can help you with the development phase. The affordable housing crisis also affects the elderly population, as many aging homeowners struggle to find affordable senior housing options.

The HUD already suggested that reverse mortgages could be a good alternative for senior citizens to access the equity in their houses.

Conclusion

The U.S. multifamily sector is heading for continuous growth in the future, but it remains to be seen whether or not affordability with go hand in hand with the expected growth.