The Housing Market and Multifamily feed off each other

[William Costello]

The housing demand has been high since 2020 with no slowing down, and housing supply is the other side of the equation with little to no inventory on the horizon. New housing supply, inclusive of apartments, single family homes, house boats, mobile homes, and more, needs to match growing demand which has not been the case because of shortages across the country, which has not happened, prices will continue to increase. With what is happening in the housing markets apartment rents show a similar trend as average rents in the nation increase each month with room for further growth. A portion of these high prices could be due to increased investor attention, whether it’s for single family homes or increasingly attractive multifamily assets, but as noted above, investor interest is not the dominant factor here. Prices are rising because more people need more places to live and with rising cost of inflation.