2017 Multifamily Forecast

Multifamily Executive recently spoke with five industry leaders to get their predictions on what’s in store for 2017.

They paint a generally optimistic picture – and here are some highlights:

Millennials are renting based on lifestyle first, job second – The execs agreed that Millennials are still likely to zero in on the city they prefer – like Austin or Seattle – before securing a job next year. That’s a sharp contrast to Boomer behavior. They almost never moved unless there was a job waiting.

Look for a boom next year in moderate-income multifamily starts – Believe it or not, more than 80% of new multifamily construction in the last two years was in the luxury sector. Across the nation, there’s now a big demand for more affordable units.

Multifamily is benefiting from the slow-but-steady decline in home ownership – The home ownership rate today sits at 62.9%, the lowest level since the Census Bureau began tracking it. Don’t expect an uptick in 2017 because many people still earn less than they did before the Great Recession.

The renovation market will gain steam – Many older multifamily buildings are now overdue for cosmetic upgrades. Many owners are sinking big budgets into upgrading kitchens and baths to stay competitive, especially in hot markets like Portland and Boston.

You can’t stay red-hot forever – The experts agreed that some of the cities that have experienced explosive growth in multifamily – places like Denver, Houston and Phoenix – will start to cool off slightly because there’s plenty of supply. But they foresee no cooling in markets like San Diego, Nashville and Atlanta. Look for a mini-boom in multifamily in the western San Fernando Valley north of Los Angeles, where supply hasn’t kept pace in recent years.

With these upcoming multifamily trends in mind, LP is driving innovation with building products that are changing the way we meet the needs of the multifamily building industry.

Our LP® FlameBlock® fire-rated OSB sheathing, for example, provides timesaving and cost-saving benefits to multifamily builders. Our LP® TechShield® radiant barrier sheathing can help lower cooling costs

Browse throughout the blog where we discuss 2017 industry forecasts for single-family housing!

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Renovation5 min

Tips on Re-Siding in Historic Districts

If you own a home in a historic district, you can forget about replacing the existing siding with vinyl. Most historic districts require replacement siding to closely match the original, hence wood (or engineered wood) and brick. Understanding home building regulations based on historic overlays can help eliminate the headache during renovations, so it’s important to stay in the know before embarking on the project.

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Industry Trends6 min
Where the Construction Labor Shortage Is Most Severe

According to the latest American Community Survey from the U.S. Census Bureau, about 4 million people now work in residential construction (both single-family and multifamily) – down from the 5 million who were employed just before the Great Recession. Although the workforce has shrunk by 20 percent nationwide, some parts of the country are experiencing less pain than others. Similarly, light commercial construction has been reportedly back on the rise post-Recession, with IBISWorld reporting that the recovery started just before 2014 and continuing steadily through 2019 (source).

Renovation5 min
Top Four Home Exterior Tips for Fall

With fall just around the corner, it’s time to plan how you will ensure your home’s exterior is ready for the cooler temperatures while also keeping up with the latest seasonal trends. Not sure where to start? We break down the top four home exterior tips for fall for a little inspiration.

Industry Trends7 min
A Commitment to Product Availability

It’s frustrating when factors outside of your control cause you delays or unexpected expenses during a project. Those factors could be weather delays, insufficient staffing, breakdowns in cash flow and unreliable product availability. LP devotes significant resources each year to ensure that its product availability is second to none. Because even the most innovative building solution is useless to customers unless they know that it’s available when they really need it.