2014 Shows Rise in Demand for Multifamily Housing Says Giro Kastimbrakis

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Information about 2014 Shows Rise in Demand for Multifamily Housing Says Giro Kastimbrakis
Real Estate

Published on February 18, 2014

Author: girokatsimbrakis

Source: slideshare.net

Description

The National Association of Home Builders (NAHB) reported that the demand for apartments will increase over the next few years. Panelists reported these findings at the International Builders’ show in Las Vegas. Multifamily home and apartment building construction is strong, but the NAHB does not anticipate the demand to cease until around 2015 or 2016 when they expect to reach sustainable levels.

These findings show a sharp rebound from where the market was in 2009. David Crowe, the chief economist for the NAHB stated that they are “forecasting 363,000 multifamily housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.”

There are a few reasons why multifamily housing is making such a strong comeback after the recession. The first reason is after the economic collapse, the rate of multifamily show construction slowed dramatically. Therefore, when the economy started picking up again in 2011 a lot of building was just to come back to normal levels. Another reason for the comeback is the large demand for apartments from ‘echo boomers.’ This demand will continue to increase with people born post-1980 seeking apartments and housing. Current young people are much more likely to rent throughout their 20s and beyond than their parents at the same age. Additionally, a third reason for the multifamily housing comeback is that young adults, and some older adults are now also more attracted to renting versus home ownership. This affinity towards renting is due to lower credit scores because of small entry salaries and a slow employment market, and tight underwriting standards for mortgages. All of these factors contribute to the upswing in rental housing. Multifamily housing will continue to hold its own in the market as long as mortgage rates are high and careers remain unstable.

2014  Shows  Rise  in  Demand  for   Multifamily  Housing   By  Giro  Katsimbrakis   February  12,  2014     The  National  Association  of  Home  Builders  (NAHB)  reported  that  the  demand  for   apartments  will  increase  over  the  next  few  years.  Panelists  reported  these  findings  at  the   International  Builders’  show  in  Las  Vegas.  Multifamily  home  and  apartment  building   construction  is  strong,  but  the  NAHB  does  not  anticipate  the  demand  to  cease  until  around   2015  or  2016  when  they  expect  to  reach  sustainable  levels.     These  findings  show  a  sharp  rebound  from  where   the  market  was  in  2009.  David  Crowe,  the  chief   economist  for  the  NAHB  stated  that  they  are   “forecasting  363,000  multifamily  housing  starts  in   2015,  which  is  above  the  previous  longer  term   average  of  340,000  as  more  young  adults  prefer   renting.”     There  are  a  few  reasons  why  multifamily  housing  is   making  such  a  strong  comeback  after  the  recession.   The  first  reason  is  after  the  economic  collapse,  the  rate  of  multifamily  show  construction   slowed  dramatically.  Therefore,  when  the  economy  started  picking  up  again  in  2011  a  lot  of   building  was  just  to  come  back  to  normal  levels.  Another  reason  for  the  comeback  is  the   large  demand  for  apartments  from  ‘echo  boomers.’  This  demand  will  continue  to  increase   with  people  born  post-­‐1980  seeking  apartments  and  housing.  Current  young  people  are   much  more  likely  to  rent  throughout  their  20s  and  beyond  than  their  parents  at  the  same   age.  Additionally,  a  third  reason  for  the  multifamily  housing  comeback  is  that  young  adults,   and  some  older  adults  are  now  also  more  attracted  to  renting  versus  home  ownership.  This   affinity  towards  renting  is  due  to  lower  credit  scores  because  of  small  entry  salaries  and  a   slow  employment  market,  and  tight  underwriting  standards  for  mortgages.  All  of  these   factors  contribute  to  the  upswing  in  rental  housing.  Multifamily  housing  will  continue  to   hold  its  own  in  the  market  as  long  as  mortgage  rates  are  high  and  careers  remain  unstable.   Demand  for  apartments  and  rental  units  remain  high  and  the  market  shows  great  promise   for  continued  expansion  in  2014.     Giro  Katsimbrakis  has  twenty  years  worth  of  real  estate  industry  experience.  He  began  as  a   leasing  agent  for  Kiska  Developers  in  New  York  City,  and  quickly  worked  his  way  up  the   company  ladder  to  Director  of  Sales.  After  bringing  the  company  out  of  the  red  and  expanding   its  office  to  over  twenty  agents,  he  started  his  own  commercial  and  residential  real  estate   company,  East  River  Properties.  After  taking  over  the  Las  Vegas  and  Arizona  markets,  Giro   Katsimbrakis  relocated  to  the  Dallas/Fort  Worth  area  and  founded  DPW  Properties,  which  he   is  currently  in  the  process  of  expanding  nationwide.  Throughout  his  long  and  successful  career,   Giro  has  rehabbed  over  four  hundred  properties,  and  bought  and  sold  millions  of  dollars  worth   of  real  estate.  

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