The changing dynamics of today’s housing market could create 1.7 million new multifamily renters between now and 2015, Freddie Mac’s Multifamily Research Group said this week.
The government sponsored enterprise expects the homeownership rate to fall 1 to 2 percentage points if the slow economic recovery continues.
The nation’s expanding renter pool is the result of economic stress, high foreclosure rates and changing demographics, the research group asserted in a new study.
The takeaway from the study is that rental demand is only expected to rise in the coming years.
Individuals and families looking for homes to rent also increased in recent years as the pool of qualified homebuyers shrinks.
The single-family rental market has grown 16% since 2007, suggesting renting is popular across housing product types.
“The research supports the optimism that currently pervades the multifamily market,” said David Brickman, senior vice president of Freddie Mac Multifamily. “It confirms that multifamily is a bright spot in the real estate market and the economy more broadly, and it will likely continue to shine for quite some time.”