Despite the slight increase in homeownership, Campbell doesn't believe that it will have a strong impact on the multifamily market, for both high-end and workforce housing. “I think that there is room for growth in the for-sale market and for rent growth in multifamily,” he says. “It will have different impacts on each segment of multifamily. A lot of the people that move into class-A luxury housing are renters by choice. They could own if they wanted, but they value the mobility or flexibility. Our demographic is a renter by necessity. When you are a renter by necessity, you don't become renters by choice in big droves. It happens gradually over time, so I don't think that we will see a mass exodus from class-B into buying homes. It will happen little by little.”

Homeownership levels ticked up in 2017, and multifamily investors are keeping a close eye on them in the coming year. Homeownership peaked in 2006 at 69%, and last year, in 2016, it hit a low point, dropping down to 63%. This year, homeownership began to tick back up, reaching 64%. In 2018, it could continue to grow.

“We have seen some articles where the homeownership rate has ticked up slightly, and we watch that pretty closely in our industry,” Greg Campbell, senior managing director of acquisitions and dispositions at TruAmerica Multifamily, tells GlobeSt.com. “I don't see a whole bunch of people running out and driving back up to 69%, but you may see that homeownership rate tick up a little bit more in 2018, I think that is something everyone will be keeping their eye on.”

The uptick is hard to pinpoint, but those that lost their homes during the financial crisis may now have recovered enough to jump back into homeownership. “People that hurt their credit in 2009, 2010 and 2011. It takes about seven years for bad credit to get off your record, and for a lot of people, credit records are clean again,” says Campbell. “With the wage growth that we have seen, some people have been able to save up for a down payment.”

Another driver could be the aging millennial demographic. Millennials are a major renting demographic, and actually a major factor in the growth of the multifamily market. “The millennial cohort that we talk about is getting older,” says Campbell. “You are starting to see more millennials getting married and starting to have children, and they are going to start making life decisions.”

Despite the slight increase in homeownership, Campbell doesn't believe that it will have a strong impact on the multifamily market, for both high-end and workforce housing. “I think that there is room for growth in the for-sale market and for rent growth in multifamily,” he says. “It will have different impacts on each segment of multifamily. A lot of the people that move into class-A luxury housing are renters by choice. They could own if they wanted, but they value the mobility or flexibility. Our demographic is a renter by necessity. When you are a renter by necessity, you don't become renters by choice in big droves. It happens gradually over time, so I don't think that we will see a mass exodus from class-B into buying homes. It will happen little by little.”