Posted in Industry News
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
Check back on the blog next week where we’ll discuss 2017 industry forecasts for single-family housing!
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