WASHINGTON, DC – Delayed marriages, an aging population and international immigration are increasing a pressing need for new apartments, to the tune of 4.6 million by 2030, according to a new study commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA). It’s vital to note that:

Currently, nearly 39 million people live in apartments, and the apartment industry is quickly exceeding capacity; In the past five years, an average of one million new renter households were formed every year, which is a record amount; and, It will take building an average of at least 325,000 new apartment homes every year to meet demand; yet, on average, just 244,000 apartments were delivered from 2012 through 2016.

Based on research conducted by Hoyt Advisory Services and commissioned by NAA and NMHC, the data includes an estimate of the future demand for apartments in the United States, the 50 states and 50 metro areas, including the District of Columbia. For the purposes of this study, apartments are defined as rental apartments in buildings with five or more units.

The increased demand for apartments is due in large part to:

Delayed House Buys. Life events such as marriage and children are the largest drivers of home ownership. In 1960, 44 percent of all households in the U.S. were married couples with children. Today, it’s less than one in five (19 percent), and this trend is expected to continue.

The Aging Population. People ages 65-plus will account for a large part of population growth going forward across all states. The research shows older renters are helping to drive future apartment demand, particularly in the northeast, where renters ages 55-plus will account for more than 30 percent of rental households.

Immigration. International immigration is assumed to account for approximately half (51 percent) of all new population growth in the U.S., with higher growth expected in the nation’s border states. This population increase will contribute to the rising demand for apartments. Research has shown that immigrants have a higher propensity to rent and typically rent for longer periods of time.

“We’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead. More than 75 million people between 18 and 34 years ancient are entering the housing market, primarily as renters,” said Dr. Norm Miller, Principle at Hoyt Advisory Services and Professor of Real Estate at the University of San Diego. “But renting is not just for the younger generations anymore. Increasingly, Baby Boomers and other empty nesters are trading single-family houses for the convenience of rental apartments. In fact, more than half of the net increase in renter households over the past decade came from the 45-plus demographic.”

“Apartment rentals are on the rise, and this trend is expected to continue at least through 2030, which means we’ll need millions of new apartments in the U.S. to meet the increased demand. The western U.S. as well as states such as Texas, Florida and North Carolina are expected to have the greatest need for new apartment housing through 2030, although all states will need more apartment housing moving forward,” said NAA Chair Cindy Clare, CPM. “The need is for all types of apartments and at all price points.”

There will also be a growing need for renovations and improvements on existing apartment buildings, which will provide a boost in jobs (and the economy) nationwide. Hoyt’s research found that 51 percent of the apartment stock was built before 1980, which translates into 11.7 million units that could need upgrading by 2030. The older stock is highly concentrated in the northeast.

“The growing demand for apartments – combined with the need to renovate thousands of apartment buildings across the country – will make a significant and positive impact on our nation’s economy for years to come,” clarified NMHC Chair Bob DeWitt. “For frame of reference, apartments and their 39 million residents contribute $1.3 trillion to the national economy. As the industry continues to grow, so will this tremendous economic contribution.”

Other highlights from the report include:

Demand is expected to be especially significant in Raleigh, N.C., with a 69.1 percent increase in new apartment units between now and 2030, Orlando, Fla. (56.7 percent), and Austin, Texas (48.7 percent). Also notable, the demand in the New York City metro area will call for an additional 278,634 apartment units, Dallas-Ft. Worth, Texas (266,296 new units), and Houston, Texas (214,176 new units).

Propensity to rent is higher in high-growth and high-cost states.

Hundreds of thousands of new rental units will be needed by 2030 in states such as California, Georgia, Arizona, Florida, North Carolina, Nevada, New York, Texas, Virginia and Washington.

In conjunction with the study’s release, the website www.WeAreApartments.org breaks down the data by each state and 50 key metro areas. Visitors can also use the Apartment Community Estimator – or ACE – a tool that allows users to see the trends in their state or metro area to determine the potential economic impact locally.

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SAN ANTONIO, TX – LYND announced its newest acquisition, a portfolio of eleven Texas multifamily properties. LYND sourced this portfolio through its broad base of relationships in the industry and partnered with a global private equity firm to capitalize the transaction.

The portfolio consists of eleven properties with 2,405 units with an average vintage of 2005. The business plot centers on improving the neglected aspects of the various properties, improving operations and increasing rents to perform in-line with, or better than, market standards.

LYND will also support these assets with active property management, marketing and construction services to improve the quality of these buildings ultimately increasing portfolio net operating income and asset values. These acquisitions will greatly enhance LYND’s already strong presence throughout Texas. The eleven-property portfolio has the largest concentration of assets in Dallas, with other assets in Houston, Midland, Odessa and El Paso. We are excited to offer our knowledge, skillset and management services to position these assets as leaders in their submarkets.

Madison Marceau, an Executive Vice President of Acquisitions at LYND, said, “We are excited to buy this fantastic collection of eleven assets all located in our home state of Texas. We very much appreciate the efforts of our capital partner and the key role they played in the acquisition. The team at LYND is looking forward to managing these assets with a focus on optimizing operations, enhancing the resident experience and successfully executing our business plot.”

LYND is a vertically integrated real estate platform with investments, development, investment management and property management. With 35 years of multifamily experience, we currently serve approximately 30,000 units across eight states and have completed over $4 billion in multifamily transactions/investments.

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RALEIGH, NC – Officials of The Preiss Company (TPCO), ranked the nation’s fifth largest, privately-held, student housing owner-operator, announced that it continues to build on its record 2016 growth with the acquisition of Cabana Beach Gainesville and Cabana Beach San Marcos, two student housing communities totaling a combined 2,232 beds for an undisclosed amount. The two communities, serving the University of Florida and Texas State respectively, will be renovated and repositioned in their respective markets.

“These acquisitions with a new joint venture partner play to another one of our core strengths: adding value through strategic upgrades and repositioning,” said Donna Preiss, founder and CEO, The Preiss Company. “TPCO has a proven record in both in-depth renovation and development. We’ve overseen more than $30 million in construction/upgrades over the past three years. Only a handful of student housing owner/operators have the extensive experience and expertise in this sector of our business.”

Cabana Beach San Marcos

Located just off the Texas State University campus, the 744-bed Cabana Beach San Marcos sits on 19 acres and provides the latest in student resources. Community amenities include a swimming pool, sand volleyball court, dog park, regulation-sized basketball court, computer lab and study rooms.

All units are fully furnished with private bedrooms and private bathrooms. Additionally, units come with a full kitchen with oven, refrigerator, dishwasher, microwave, full-size washer and dryer, private balconies/patios, as well as wood-style floors in the common areas.

TPCO plans to upgrade 114 units, totaling 306 beds, and to renovate the community’s clubhouse. “The Cabana Beach San Marcos is a prime value-add addition to our continually growing student housing portfolio,” Preiss noted. “We secured the property at below replacement cost, and the market has seen approximately five percent rent growth in recent years, making this a particularly attractive investment.”

Cabana Beach Gainesville

Situated roughly a mile from the campus of the University of Florida, the 1,488-bed Cabana Beach Gainesville is housed on 55 acres. Each fully equipped apartment unit provides a flat-screen television, coffee and end tables, sofa, couch, dining table and fully furnished private bedrooms and bathrooms. Rooms also provide full-sized washer and dryer, alarm systems and private balconies/patios. Community amenities include a beach clubhouse, resort-style waterfall pool, sandy beach tanning zone, 24-hour fitness center, sand volley ball courts, grilling stations, computer lab, study rooms and a gated entrance. The pet-friendly community also hosts weekly resident events.

TPCO is plotting to renovate common areas, as well as units, and expects to makeover the building exteriors with power washing and/or new paint, new fencing, upgraded gutters and new window screens.

“The Cabana Beach Gainesville will benefit from capital infusion and a renewed focus on rental growth,” Preiss stated. “TPCO’s business plot is to double down in markets with solid fundamentals and in which the company already has a successful presence. Both of these assets are in alignment with that plot. We currently are in both markets with assets that have experienced 100 percent occupancy, as well as above average rental rate growth.

“We loved record growth last year and are on target to challenge that record in 2017. Our national pipeline remains full, and we continue to have an appetite for further growth with a continued positive outlook for the industry,” Preiss concluded. “TPCO targets markets in the 5 largest student housing states, and Texas and Florida are the two largest student housing states in the U.S. With these two buys, TPCO will own and/or manage approximately 4,500 beds in Florida and more than 5,300 beds in Texas.”

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