The multifamily market may continue to see a steady stream of consumers grabbing rental application forms, as the low inventory in the residential sector, couple with credit issues, are steering some away from purchasing a home.
In the next decade, the number of renter families could rise between 5 million and six million, according to an infographic from the Bipartisan Policy Center. This is due to multiple issues, including an increased difficulty of obtaining credit, a drop in income and other financial constraints.
"Families will likely have less wealth because the rising generation is starting with less wealth." Barry Zigas, director of housing policy for Consumer Federation of America, told HousingWire. "If down payments are at any significant level, it will be a barrier to acquiring a home for longer than may have been the case in the past."
Multifamily occupancy rates were already at low levels during the second half of 2011. According to a report from Reis, the national vacancy rate for the third quarter was 4.6 percent, slightly lower than the 4.7 percent recorded during the first three months of the year.