The multifamily housing market will remain strong despite facing economic headwinds this year, according to Donna Kimura's report on the Freddie Mac Multifamily Outlook for 2016.
The sector is coming off a year in which rental housing demand kept pace with a big wave of new units that was delivered in 2015. Approximately 306,000 multifamily units entered the market—the most in a single year since 1989—and the level of new supply is expected to remain elevated over the next few years.
That’s creating concern that the market is taking on too much supply, but renter demand is expected to absorb the new units being built. Much of the demand is fueled by favorable demographic trends and reduced affordability of owning a home.
Click on Kimura's report to read more and see a video preview.