Jobs, Uncertainty Holding Back Multifamily Bull Run

ENCINO, CA-The multifamily industry is heading for its next bull run, but hesitancy on the part of the business world is a major obstacle. Still, investors should begin to prepare themselves for the next cycle. That was the message from a trio of executives at Marcus & Millichap Real Estate Investment Services Inc., who delivered a special presentation, “US Economic, Capital Markets and Apartment Market Overview and Outlook,” yesterday.

Beginning with a broad look at the economy, SVP and managing director of research services Hessam Nadji pointed out that the crawling pace of job growth is the primary reason behind the fears of a double-dip recession. In the 2001-2003 recession, the US lost 2.7 million jobs, but gained 8.1 million between 2003 and 2007. This latest downturn saw 8.4 million positions terminated between 2007 and 2009, but has only seen a net gain of 723,000 since year-end 2009.