Former multifamily industry executive Ron Terwilliger recently addressed stakeholder at the Apartment Finance Today conference in Las Vegas, discussing his insights and experience into the sector.
Terwilliger's recent focus has been on the need for quality workforce housing, and he noted that uneven development could lead to affordability problems if more steps are not taken. He told attendees that the country will need at least 3 million rental homes due to the sector's demographics, Apartment Finance Today reports, a need that he believes is not fully understood by the government.
He added that changing conditions are a major factor and suggested that the industry is cyclical, with downturns and rebounds occurring periodically. He noted that recent years have seen many builders find themselves with assets they had not planned to keep holding. In those cases, it can be particularly important to bring in skilled rental managers to oversee the property. The importance of management staff is sometimes underestimated by developers, according to Terwilliger.
In addition to his suggestions, he observed that the prevailing conditions may not be contributing to affordable development. He noted the capital environment seems dominated by the desire for other types of properties, such as transit-oriented products that may take longer to build and entitle.