The survey also asked industry participants to identify the areas that should be a focus for the multifamily housing market. Fifty-one percent said they believe that enhancing the energy efficiency of multifamily properties is extremely/very important. This was closely followed by respondents also rating increasing the supply of affordable housing (48%), addressing the housing needs of America's seniors and increasing the creation of workforce housing properties (both with 47%) as extremely/very important areas of focus.

“Industry participants understand the importance of improving the energy efficiency of properties, growing the affordable and workforce housing stock and meeting the needs of our nation's seniors—all of which will help us address our nation's affordability crisis,” says Brickman. “Freddie Mac has doubled down in all these areas, and we are working hard to ensure we're doing all we can to bring affordability to the rental housing market.”

The survey gauged the attitudes of industry participants in sectors such as property development; building and construction; property management; lending, financing and investing; and government and trade associations. It was conducted by phone between May 22 and June 5, with all 200 participants receiving in-depth interviews.

Freddie Mac

McLEAN, VA—Most multifamily industry participants believe the rental housing market will continue to grow, fueled by increasing demand and a growing population, according to a survey conducted by Freddie Mac. Conversely, though, a plurality of participants are less optimistic about the outlook for affordable housing by comparison to a year ago.

The Freddie Mac survey, which the GSE commissioned in partnership with Hanley Wood, found that 60% of industry participants anticipate the multifamily housing market will grow over the next three to five years, compared to 15% who see it slowing down. Of those who believe the industry will grow, nearly one-third cite supply and demand as the driver for this continued growth, while another 17% cite population growth.

Looking at affordable housing, though, the outlook is dimmer. A plurality, or 42%, of survey respondents express declining optimism about the outlook for affordable rental housing today as compared to last year. When asked about the top challenges in offering new affordable housing, 40% cite costs, such as those associated with land and construction, as the greatest challenge; no other factor came close. When asked how they are responding to affordable housing challenges, most respondents couldn't cite specific actions they're taking to address these issues.

“The findings of this survey indicate a general consensus around the strength of the multifamily market. Confidence in market fundamentals remains high among industry participants, largely due to strong demand fueled by lifestyle preferences and demographic changes,” said David Brickman, executive vice president of Freddie Mac Multifamily. “However, many participants are also seeing that same demand is exacerbating the affordability crisis for many families. It underscores the need for increased investment in the acquisition and preservation of affordable rental housing.”

The survey also asked industry participants to identify the areas that should be a focus for the multifamily housing market. Fifty-one percent said they believe that enhancing the energy efficiency of multifamily properties is extremely/very important. This was closely followed by respondents also rating increasing the supply of affordable housing (48%), addressing the housing needs of America's seniors and increasing the creation of workforce housing properties (both with 47%) as extremely/very important areas of focus.

“Industry participants understand the importance of improving the energy efficiency of properties, growing the affordable and workforce housing stock and meeting the needs of our nation's seniors—all of which will help us address our nation's affordability crisis,” says Brickman. “Freddie Mac has doubled down in all these areas, and we are working hard to ensure we're doing all we can to bring affordability to the rental housing market.”

The survey gauged the attitudes of industry participants in sectors such as property development; building and construction; property management; lending, financing and investing; and government and trade associations. It was conducted by phone between May 22 and June 5, with all 200 participants receiving in-depth interviews.