What happens when multifamily housing starts all but vanish for 4 years? The answer is a drastic increase in demand for rentals! After biting the bullet of falling rents over the past 4 years, apartment owners and operators are now leveraging the decreased supply of rentals into the beginning of the much forecasted increase in rents.
Here is a great article from msnbc that talks about the nationwide increase in rents. The challenge owners now face will be to re-acclimate their residents with an increase in renewal rates. We are sure to see some shock at first, but going back to the pre-2008 landscape, residents all but expected an increase at renewal. It will take some time, but it appears that our ability to push NOI on properties is becoming much more feasible.
-Danny Soule
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