Millions Of Americans Are Still Sharing Apartments And You’re Worried About A Bubble?
Source: bisnow.com | Re-Post MNM Partners, LLC 10/25/2017 –
Though the number of apartments under construction has reached a cyclical high, fears of an approaching bubble may be premature.
Those wary of the impact on fundamentals of 480,000 units under construction this year can be assuaged by the fact that apartment demand in the U.S. is still exorbitant, National Association of Real Estate Investment Trusts Senior Economist Calvin Schnure said.
“Whatever level of supply there has been so far, it hasn’t been enough to meet population pressures and is nowhere near beginning to address the past buildup of population pressures,” Schnure said.
Developers would need to build 4.6 million apartment units by 2030 to meet renter demand. That is at least 325,000 apartment units needed a year — and even then, that number will only apply if population growth maintains the same pace as this year.
The trend of shared housing indicates how burdened renters are. Schnure said an abundance of millennials still live in their childhood homes, and an overwhelming number of Americans live with roommates instead of attaining their own residences.