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
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
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