Rental housing demand should remain strong throughout this year and next, according to Steven Guggenmos, senior director of multifamily investments & research at Freddie Mac.

Guggenmos notes that while vacancy rates are low, they are expected to increase slightly going forward.

“Current apartment vacancy rates are at a 13-year low at 4.1 percent as of the second quarter of 2014,” he says in the below video. “We projected that they will increase to 4.8 percent by 2015; that’s still lower than the long-run average of 5.6 percent.”

The company estimates that 3.9 million households should have been formed during the Great Recession but were not, according to its Mid-Year Outlook. But Millennials are expected to pick up the pace of absorption, as more than 340,000 units started in 2014 come through the pipeline in the next few years.

Here’s what Guggenmos had to say about this year so far:

Lindsay Machak is an Associate Editor for Multifamily Executive. Connect with her on Twitter @LMachak.