Freddie Mac has become one of the primary lenders for commercial multifamily real estate. Over the course of only a handful of years, the organization has lent more than $80 billion to the multifamily sector. Such significant spending is fueled by demographic and economic trends that point to a multifamily market that will continue to grow.
Part of the reason prospects are excellent in the multifamily sector is employment trends. As more young people get steady jobs, they will move their families into apartments. Another reason to invest in multifamily units is that demand already exists and will only likely continue to grow because there is a shortage of affordable multifamily homes across the United States.
Millennials are playing a large role in the growth of the multifamily market. Because of unemployment and student debt, many millennials feel excluded from the housing market. As these individuals slowly get jobs, they are more focused on renting than purchasing.
According to Freddie Mac, a need for 440,000 new units per year will exist for the next decade. Also, new single-family construction is below demand, so families are staying in the rental market until more homes are built.
