In the aftermath of the worst housing crisis in a generation, more people are eschewing the American dream of homeownership and embracing apartment rentals in the still-fragile economy.
Surging demand for apartments, particularly by younger consumers, has given a boost to the nation’s apartment landlords. Multifamily properties represent one of the few corners in the commercial real-estate industry where rents are rising rapidly. As such, lenders are giving the green light to multifamily construction projects even as development grinds to a halt in other property sectors.
“People weren’t buying homes anymore, but they still needed shelter,” says Tom Mitchell, the Miller Tabak & Co. analyst who claimed the No. 1 spot in the Best on the Street survey’s real estate category. “This created an imbalance that is still going on, where apartments are still able to raise rents”.