It might not come as much of a surprise that multifamily sales are on the rise in the post-recession economy. After all, a record number of foreclosures forced many homeowners to move into apartments and other multifamily developments.
However, many industry watchers feared that the rise of former homeowners moving into multifamily developments would be offset by renters that would be forced to downgrade or move back home in droves. Some pundits even predicted that landlords would suffer huge losses while offering rental discounts and other freebies to keep units filled.
No matter how you looked at it, the multifamily housing industry seemed primed for financial disaster. But new research suggests that the multifamily housing industry has skirted drastic vacancy spikes and plunging rents.
According to a new study from Marcus & Millichap Research Services, apartment transactions totaled $7.1 billion in the second quarter, up 32% from a year earlier.
In another study, Real Capital Analytics reports that closed sales hit $2.6 billion in August, the highest month this year and the most active month since August 2008.
These findings are in stark contrast to a recent Fannie Mae survey which indicates that a major factor affecting the housing market is that many American’s are reluctant to buy. The number of people that think buying a home is a good or safe investment is in steady decline, falling from 67 percent in July, from 70 percent in January, and 83 percent in 2003.
So even though many homebuyers are sitting on the sidelines, multifamily-building sales are on the rise, reversing the slowdown that followed the financial market’s collapse two years ago
