Hats off to Marcus & Millichap…who are both my friends and competitors! Linwood C Thompson, Hessam Nadji and William Hughes (all M&M segment Directors) laid out their long term vision of US economic, capital, and apartment markets. It was highly informative…and the take-away for me was very clear. The age of everyone trying to own their home has peaked. While many may be able to afford the new lower SFR prices…many will also opt not to. US Census Bureau stats show that the home-ownership percentage appears to have peaked around 2005 at 70%, and the long term trend is downward. Combine that with the precipitous decline in multifamily construction start (normally 350Kunits/yr. but only 200K units last year) and you’ve got a significant rental housing shortage in the near future. I personally suggest buying before prices start going up…but everyone is responsible for developing their own strategy. What’s your approach?
Contact Rick M. Bean at www.rosecitycre.com, or call: 503.577.1034
Another great article!