With the housing market still recovering, more Americans are opting to rent a home rather than purchase one.
Research conducted by the Federal Reserve Bank of Saint Louis shows that the percentage of American households who own their homes has decreased from 69% in 2004 to 65.1% in 2013. In contrast, rental vacancy rates are the lowest they’ve been since the year 2000.
A recent article published by the New York Times suggests several factors have led to the increased demand for rental housing.
First, fewer multifamily units have been constructed in the past five years as a result of the recession. Second, the recession created an uptick in the number of home foreclosures nationwide, turning many homeowners into renters overnight.
The article also notes that the demand for rental housing has also lead to an increase in the number of eviction filings.
As more renters compete for fewer units, landlords are more inclined to evict tenants sooner. Furthermore, tenants who are evicted may be forced to double up with friends or family, creating a domino effect that places their friends or family at risk of eviction for potentially violating their lease agreements.
Construction of Rental Units Is Going Up
Fortunately, it looks like the demand for rental housing may see some relief soon. A second article published by the New York Times indicates that the construction of multifamily housing units is now on the rise. Citing data collected by the U.S. Census Bureau, the article reports that, in the past 12 months, developers have started constructing more than 332,000 new apartment units nationwide. This is the highest single-year increase since the 1980s.
TSAHC Offers Financing for Multifamily Construction
To facilitate the creation of additional rental housing, TSAHC offers several financing options for multifamily housing developers. These include tax-exempt bonds for larger affordable housing projects, as well as loan products for short and long-term financing. To view a list of TSAHC’s financing options, click here.
Developers interested in TSAHC’s multifamily financing should contact David Danenfelzer at 512.477.3562 or via email.
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.