BY RAY HANKAMER
Speakers – Stacy Hunt, Executive Director-Greystar; Ricardo Rivas, CEO-Allied Orion Group
Takeaway: Nationally and locally the multi-family (MF) segment is very healthy.
- MF starts nationally are at a record of 300-350,000 units per year
- Sales of single family homes are lagging as renters are renting longer and Millennials are choosing to rent instead of to buy
- Fancy student housing projects ‘train’ college grads to look for the same amenities in their apartment projects
- Between 2010 and 2017 tenant ‘turnover’ has fallen from 62% to 52% per annum, and the longer occupancy periods save money for MF operators nationwide as they pay fewer locator fees, renovate less often, and lose less revenue in the gaps between rentals
- There is a lot of individual and institutional equity available for MF developers now, and quality of MF developments is getting higher nationwide on average
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