Keeping up with the demand for apartments will require an additional 4.6 million to be built by 2030
Keeping up with the demand for apartments will require an additional 4.6 million to be built by 2030.
Research commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) shows that there are 39 million people living in apartments now, with the industry exceeding capacity.
The data estimates the 4.6 million rise based on several factors.
Firstly, the change in the social make-up of US households, driven by a fall in married couples. In 1960, data shows that 44% of all households were married couples with children; now that is less that 19% with the trend likely to continue. This means more demand for apartments and lower demand for single-family houses.
“We’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead. More than 75 million people between 18 and 34 years old are entering the housing market, primarily as renters,” said Dr. Norm Miller, Principle at Hoyt Advisory Services and Professor of Real Estate at the University of San Diego.
Secondly, the aging population with those aged 55+ moving to rental apartments, especially in the Northeast. The study estimates that over 55’s will grow to 30% of rental households.
Increasingly, Baby Boomers and other empty nesters are trading single-family houses for the convenience of rental apartments. In fact, more than half of the net increase in renter households over the past decade came from the 45-plus demographic,” said Miller.
Thirdly, growing immigration will contribute to the rising demand for apartments, especially in border states.
The western U.S. as well as states such as Texas, Florida and North Carolina are expected to have the greatest need for new apartment housing through 2030, although all states will need more apartment housing moving forward,” said NAA Chair Cindy Clare, CPM. “The need is for all types of apartments and at all price points.”
Full regional figures are available at WeAreApartments.org
Research commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) shows that there are 39 million people living in apartments now, with the industry exceeding capacity.
The data estimates the 4.6 million rise based on several factors.
Firstly, the change in the social make-up of US households, driven by a fall in married couples. In 1960, data shows that 44% of all households were married couples with children; now that is less that 19% with the trend likely to continue. This means more demand for apartments and lower demand for single-family houses.
“We’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead. More than 75 million people between 18 and 34 years old are entering the housing market, primarily as renters,” said Dr. Norm Miller, Principle at Hoyt Advisory Services and Professor of Real Estate at the University of San Diego.
Secondly, the aging population with those aged 55+ moving to rental apartments, especially in the Northeast. The study estimates that over 55’s will grow to 30% of rental households.
Increasingly, Baby Boomers and other empty nesters are trading single-family houses for the convenience of rental apartments. In fact, more than half of the net increase in renter households over the past decade came from the 45-plus demographic,” said Miller.
Thirdly, growing immigration will contribute to the rising demand for apartments, especially in border states.
The western U.S. as well as states such as Texas, Florida and North Carolina are expected to have the greatest need for new apartment housing through 2030, although all states will need more apartment housing moving forward,” said NAA Chair Cindy Clare, CPM. “The need is for all types of apartments and at all price points.”
Full regional figures are available at WeAreApartments.org
