We know we've blogged about the multi-family/residential rental market in the past...but we just can't help discussing how HOT this market is still. In a recent Daily Herald article, renters in the US paid $441 billion for rental units in 2014, which is an increase of $20.6 billion from the previous year. Landlords has seen an increase in rentals since 2007, when over 5 million US homes were put in foreclosure.
"The U.S. homeownership rate fell to 64.4 percent in the third quarter, an almost 20-year low, according to the Census Bureau. Renter-occupied residences grew by 1.2 million, while owner-occupied households fell about 657,000 in the 12 months through September. The rental vacancy rate dropped to 7.4 percent in the quarter, creating a shortage of about 350,000 homes by historic standards and giving landlords leverage to raise rents," as stated in the Daily Herald article.
Currently the trend for rental housing seems to continue as developers are breaking ground on new facilities at a record pace. "Builders of multifamily homes broke ground at an annual pace of 340,000 in November, compared with an average 266,000 since 1994," discussed the article.
Whether you're looking for land to build your own multi-family dwelling, or are looking to purchase an existing complex, contact us. O'Donnell Commercial is versed on multi-family/apartment building transactions throughout the Chicagoland area.