Hats off to Marcus & Millichap...who are both my friends and competitors! Linwood C Thompson, Hessam Nadji and William Hughes (all M&M segment Directors) laid out their long term vision of US economic, capital, and apartment markets yesterday. It was highly informative...and the take-away for me was very clear. The age of everyone trying to own their home has peaked. While many may be able to afford the new lower SFR prices...many will also opt not to. US Census Bureau stats show that the home-ownership percentage appears to have peaked at 70%, and the long term trend is downward.
Multifamily Shortage Looming
Combine more people choosing to rent with the precipitous decline in multifamily construction starts (normally 350K units/yr. but only 200K units last year) and you've got a significant rental housing shortage in the near future. Clearly the economy will have an impact on near term profits. But multifamily investors tend to take a 4 to 6 year outlook on their investments rather than a "flipping to make a buck in 45 days" mentality. I personally suggest buying before prices start going up...but everyone is responsible for developing their own strategy. 
Contact Rick M. Bean at www.rosecitycre.com, or call: 503.577.1034
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