According to the latest study by the National Multifamily Housing Council and National Apartment Association, new apartments are in high demand, to the tune of 4.6 million by 2030, due to the aging population, delayed marriages, and international immigration.
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.
Investors seeking high return on their investments are focusing on the Southeastern United States, favorable locations. The demand for multifamily housing in Florida is expected to add 669k new apartments households by 2030. Georgia is expected to add 220k new apartments by 2030. South Carolina 63K and North Carolina 220k.
“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,”according to NMHC.
As a leading construction group in the Southeastern United States, SWET Construction Group specializes in new developments and renovations of multi-family housing properties. Our professional team of experts gives our clients the ability to control costs and services. Our goal is to deliver a quality product in a cost effective and timely manner.