At IBS 2014 panelists at an NAHB revealed that there will be a strong demand for multi-family house plans over the next few years. Due to a variety of factors the number of homes that are available for rent rather than ownership has increased steadily since 2004 and multi-family house plans fit the bill perfectly.
“The multifamily market has rebounded significantly from its trough in 2009 at 82,000 multi-family housing starts to 340,000 in 2013,” said NAHB Chief Economist David Crowe. “NAHB is forecasting 363,000 multi-family housing starts in 2015, which is above the previous longer term average of 340,000 as more young adults prefer renting.”
The strong performance of multi-family house plans come from three sources. The first was the way that construction stalled during the original economic collapse. The 2011 resurgence of multi-family construction was catching up with the normal flow. The second source is a strong demand for apartments being fed by a rising demographic of echo boomers. This demographic will continue to grow as the market absorbs more people born after 1980. The third source is young adults who might have otherwise chosen homeownership and some older adults as well being hindered by a variety of issues, including tight underwriting standings for mortgages to low credit scores.
While multi-family house plan construction continues to be strong the NAHB does expect the speed to decrease as sustainable levels are reached in 2015 or 2016. In the meantime many markets are regaining their footing and producing as many multi-family units as they did during the relatively stable period between 1996 and 2006. As a result, the share of households that rent rather than own has increased steadily since 2004 and will likely continue until jobs are more secure, mortgages more accessible and careers more stable.
“The multifamily market has come a long way since the collapse,” said panelist Guy K. Hays, president of Legacy Partners Residential Inc. in Foster City, Calif. “Overall, supply and demand are in balance, and in most markets there is a need for the continued production of new units.”
If you think a multi-family home might be for you or you want to see some of the spacious designs, visit The House Designers multi-family house plan collection. With duplexes, triplexes, and apartments, this collection has a variety of multi-family house plans that can help you meet demand while keeping up with the neighborhood aesthetic.