Apartment Residential Rental Market faces shortage in future due to lack of financing

by Property Management Software on December 6, 2009

Residential Rental Property - Apartment Industry

Residential Rental Property - Apartment Industry

According to NMHC economist, the credit crunch caused by housing bust has shutdown the construction of new apartments. Due to increasing unemployment rates, vacancies are rising and rents are under pressure and falling in some areas.

In presenting to congress, NMHC recommended that the short-term focus should be to lower unemployment and getting economy back on track and growing again. However, in the long-term the housing needs are fundamentally changing with tenants looking to live in apartments instead of suburban single-family homes. Other studies have shown that tenants are moving closer to employment centers and closer to transit hubs. Urban Land Institute had also suggested that apartment companies, property management companies, landlords should invest in multifamily. Read more about ULI’s study by clicking here.

Due to lack of financing, construction of apartments is at standstill, which will result in rental housing shortage the coming years.

Download NMHC’s presentation on state of apartment market by CLICKING HERE

This blog post is brought to you by SimplifyEm Pay Rent Online and Property Management Software

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