Change in rental population.
Along with growth, there has been a shift in the renter population. The usual groups, young adults, low-income households, and singles have been joined by high-income earners, families with children, and older persons. While those under age 35 account for a quarter of renter growth, renters 55-64 ballooned almost as much. The aging population also means that the share of renters who are single or married without children will soar. New rental ideas will be forthcoming to meet these needs..
Apartment values are appreciating HUGELY, up 14 percent on average in 2012-13 to a new high; beating the 2007 peak by 6 percent, That’s more than single family home rentals. Cash flow and appreciation led to a 10.4 percent annual rate of return on commercial grade properties in 2013, nearly matching the 11.5 average of 1995-2004 and suggesting more sustainable growth.
Multifamily loan delinquencies are trending down with serious (90+ days) delinquencies slipping below 1.0 percent in 2013 for the first time in five years.
Private multifamily lending has rebounded. As long as they perform well, multifamily properties should attract increasing levels of private funding.
