Recovery will be led by renters, new study finds

TRD New York /
May.May 15, 2012 01:30 PM

The U.S. housing market’s recovery will be led by renters and multi-unit developments, data released today by the Demand Institute, an independent consumer research organization, predicted. The report found that 50 percent of those planning to move in the next two years say they will rent, not buy. This demand for rentals is helping to clear the supply of foreclosed single-family homes — 13 percent of all mortgages were foreclosed upon in 2011 — as developers convert them into multiple units for rent.

The data also shows that the only sector of the building industry that’s demonstrating clear signs of recovery is the development of multi-family homes, with 178,200 new multifamily units started in 2011 — up 54 percent over 2010

Last week, The Real Deal reported that the nationwide housing market is bottoming out based on data from Fiserv-Case Shiller. Today the Demand Institute’s report confirmed that study, adding that “this housing recovery will be different in nature from previous recoveries because it will be shaped by new market conditions and expectations.”

Although these findings spell good news for certain sectors of the national market, the institute’s report acknowledged that the recovery will play out very differently in some locations according to specific economic factors. — Christopher Cameron

Related Articles

Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

Numbers were down across the board (Credit: iStock)

New York’s multifamily market had its slowest first half of the year since 2011

(Credit: iStock)

NYC Multifamily building sales plummeted in 2019

(Credit: iStock)

Luxury rents up across the city

Clockwise from top left: 213 Bennett Avenue in Hudson Heights, 25-74 33rd Street in Astoria, 170 North Fifth Street in Williamsburg, and 106 Fort Washington Avenue in Washington Heights with Madison International Realty President Ronald Dickerman (Credit: Google Maps, Madison International Realty)

NYC, Westchester multifamily portfolio gets $275M recap

Austin, Texas (Credit: iStock)

These will be the best multifamily markets in 2020

2041 Adam Clayton Powell Junior Blvd in Harlem (Credit: Google Maps)

Rent-stabilized portfolio in Harlem trades for $118M