Planners: The next APA Policy Breakfast is on the topic of the rise of rental housing. Much discussion is about GEN Y not seeking homeownership as it was common for the Baby Boomers (their parents). Many have said they are to living a flexible lifestyle and do not see homeownership as a key LIFE PATH. GEN Y has saw the GEN X and Baby Boomers (and some of their peers) purchase homes during the height of the market only to be saddled with an empty asset. They seek out unique, diverse and very interesting neighborhoods. It is more a matter of urban design, than tenancy in a building (e.g. they don't care if a national real estate developer holds the mortgage).
1. What is everyone's thoughts?
2. I personally do not think multifamily is the savior particularly when GEN Y reaches the 35-40 age group. What about a rental town home community? I have only seen one examples in Philadelphia.
3. I cannot find a stat -- but I think back to the pre-WWII (1940s) when homeownership levels were 40-50%; rather than near 65% today
Look forward to the discussion!!
Slate's business and economics correspondent, writer of the Moneybox blog & author of the newly published The Rent is Too Damn High
Please join the American Planning Association for a policy breakfast discussion on the impact of the rise of rental and multifamily housing on housing and community policy and economics. Homeownership and mortgage policies were at the center of the housing crisis that plunged the nation into the deepest recession since the Great Depression. Increasingly, it appears that recovery in the housing market will be driven by renters and multifamily housing.
Both demographic and real estate trends point to the vital role of rental housing in building strong communities and the overall economy.
· Nationwide apartment vacancy rates are at a decade low while average rents continue to rise to the highest level in more than four years.
· Housing construction has been led by multifamily housing starts with single family construction continuing to decline. In February, multifamily starts grew 21.1% while single family starts declined nearly 10%. Multifamily housing construction is up 85.4% from a year ago and has fully recovered to pre-recession levels.
· Morgan Stanley estimates that converting foreclosed properties to rental properties would generate 1.8 million jobs.
· Three large population segments likely to dominate the housing market: Gen Y, retiring baby boomers, and homeowners displaced during the recession show strong preferences for multifamily and rental housing.
What are the implications of this shift for policymakers and planners? How should housing policy — from Washington to local zoning boards — change in response to the demand for rental and multifamily housing? How should housing and neighborhood policy respond to the challenge of foreclosed properties? How should housing finance policy and institutions change?