COVID-19 Continues to Impact the Multifamily Industry
Updated: Oct 14, 2020
In a recent article by the National Association of Home Builders, they noted a variety of issues affecting the multifamily industry and ways both property investors and builders are pivoting to overcome these hurdles.
As the migration from high cost of living urban centers (and their subsequent close quarters) to lower cost suburbs (and their increased private space) continues, where investors are choosing to invest- suburbs vs. city is a critical component to well-balanced portfolio.
The longer term impact of both skyrocketing material costs for renovations and the eviction moratoria has altered how investors choose to invest, spiking concern that there may an increased housing shortage.
According to the article, "home builders have been actively working to increase supply as safely as possible, but as prices continue to increase and builders have difficulty securing additional supplies, such as appliances for multifamily units, production will have a hard time keeping up with demand."
“We have had a shortage of shelter and housing for a very long time,” Ed Easley, president of LMC Development at Lennar Multifamily Communities stated. “I think the home builders and apartment developers are operating at a very high level right now, but we’re not delivering enough product. And I don’t see that coming to an end.”
You can read the full article, including links to the original audio interviews here: http://nahbnow.com/2020/10/how-covid-19-continues-to-impact-the-multifamily-industry/?utm_source=newsletter&utm_medium=13-1012&utm_campaign=MMB2020