WASHINGTON, DC–The multifamily housing market has been exhibiting nothing but prolific growth over the past decade. Now as 2017 comes to a close it is becoming apparent that this growth is starting to slow, according to a report from the Joint Center for Housing Studies of Harvard University. As the dust settles from this era, it is also apparent that the rental housing market has changed considerably and perhaps permanently, the report concluded.
In short, the apartment market is settling into a “new normal” in which nearly 21 million households pay more than 30% of their income for rent.
A Slowing Pace
The halcyon days for the sector were good indeed, as the report noted, with rental construction rebounding nearly four-fold from the market trough in 2009 to 400,000 units in 2015 — the highest annual level since the late 1980s.
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