The Steady Pulse of Multifamily

By Stephen L. Burger, CPM, CRX, CRM

There’s plenty of interesting news floating around the multifamily market these days. As we’ve reported in our Industry News section of late, the Harvard Joint Center for Housing Studies is tracking a surge in housing, and multifamily is leading that charge.

And in yet another report, this from Marcus & Millichap, as private-home sales continue to rebound, prices there are starting to creep up, driving more frustrated would-be buyers where? You guessed it . . . to the multifamily market.

And even on the development side, news we posted just today reports of one builder who has taken the stand that it’s not Millennials alone who need to rent.Transwestern is building a rental community in Dallas tailored specifically to the Now-Nearly-Forgotten Baby Boomer.

All of this bodes well for the apartment industry and reminds us all of the soundness of the industry as the economic future grows a bit cloudier and other real estate food groups, such as office and hotels, begin to ponder a possible end to the upcycle.

In murkier economic times, corporations may choose to cut back on space; destination meetings and vacation plans may also get curtailed. But as the above-mentioned news implies, the multifamily market keeps on keeping on. As we saw in the last downturn, the two sectors that remained strongest were grocery-anchored retail and apartments. In tough times, people still have to eat, and they need a roof over their heads.

Now, keep in mind that no one is predicting a stop to the current upcycle. Even though the tea leaves are becoming harder to read, the general expectation is that 2017 will be a steady year, if not a bell-ringer.

Which brings us to the basic point that, in good times and bad, no matter the fiscal environment swirling around us, multifamily always remains somewhat insulated, delivering safe returns to the investment community and ensuring a quality standard of living for our residents.

In other words, for investors looking for nearly foolproof investment targets and would-be homebuyers shut out of the single-family home market, the multifamily industry is--literally and figuratively--a safe haven.

Steve Burger, President
SteveBurger@ebmc.com
EUGENE BURGER MANAGEMENT CORPORATION

As president and COO of Eugene Burger Management Co., Steve Burger is directly responsible for the overall quality, depth and consistency of management services provided in all 15 regions in the EBMC coverage map.

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