Lots of details in the linked article:
Home ownership, which has already dropped 2.7 percent since the start of the current housing crisis, is expected to decline another 1 to 2 percentage points if the current slow recovery continues. This is one conclusion reached by Freddie Mac's Multifamily Research Group in its market demand forecast for the next three years that was released on Monday [November 5, 2012].
The multifamily housing market defined as buildings with over five units weakened somewhat during the recession but not to the same extent as the single family market and directly benefitted from the decline in the homeownership rate. The shift of households from homeownership to renters increased the demand for rental units and rents have increased (about 4.9 percent in 2011) while vacancies dropped from over 7.3 percent in 2009 about 5 percent today. Supply remains low with only 167,000 construction starts in the sector last year, far below the average volume of 260,000 units in 2001-2010.
Freddie Mac's economists looked at both the renters and owner's share of the residential housing market basing its predictions on three different economic scenarios; 1) no economic recovery, 2) A base scenario with economic growth slightly slower than long run averages; 3) An accelerated Recovery.
Read the whole article: Freddie Mac sees Continued Healthy Multi-family Market.
If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.
Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.
Did this post help you? Let us know by leaving your comment below.
Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.
Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.
We do not necessarily fact checked the contents of every linked article or page, etc.
If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.
The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?
For our part, we believe in strong regulations and strong regulators.
We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.
We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.