CRE Emerging Trends Outlook for 2020
The Apartment Sector
The National Multifamily Housing Council and the National Apartment Association estimated that, to meet structural demand, apartment developers would need to add an average of 325,000 new unit completions annually between 2017 and 2030. On pace to exceed that figure in 2017, 2018, and 2019, developers believe they are still releasing pent-up demand from the Great Recession years between 2009 and 2014, when production plummeted well below historical average starts of 344,000 units annually.
The multi family industry indicates that more than 4 million new units of rental apartments between now and 2030 are needed. Class A properties located in fast-growth, mostly Sun Belt local economies—i.e., in Florida, Texas, California, and Arizona are attractive to highly educated up-and-comer earners, have been driving development and investment portfolio activity among the multifamily developers over the past eight or nine years.
Sperry CGA offers investment opportunities not only in gateway, but also in secondary, and tertiary markets that exhibit growing populations, above average job growth, emerging technology sectors and high level of educational attainment.
* source PWC/ ULI