2014  Shows  Rise  in  Demand  for  Multifamily  Housing  By  Giro  Katsimbrakis  February  12,  2014    The  National  Association  of  Home  Builders  (NAHB)  reported  that  the  demand  for  apartments  will  increase  over  the  next  few  years.  Panelists  reported  these  findings  at  the  International  Builders’  show  in  Las  Vegas.  Multifamily  home  and  apartment  building  construction  is  strong,  but  the  NAHB  does  not  anticipate  the  demand  to  cease  until  around  2015  or  2016  when  they  expect  to  reach  sustainable  levels.    

These  findings  show  a  sharp  rebound  from  where  the  market  was  in  2009.  David  Crowe,  the  chief  economist  for  the  NAHB  stated  that  they  are  “forecasting  363,000  multifamily  housing  starts  in  2015,  which  is  above  the  previous  longer  term  average  of  340,000  as  more  young  adults  prefer  renting.”    There  are  a  few  reasons  why  multifamily  housing  is  making  such  a  strong  comeback  after  the  recession.  

The  first  reason  is  after  the  economic  collapse,  the  rate  of  multifamily  show  construction  slowed  dramatically.  Therefore,  when  the  economy  started  picking  up  again  in  2011  a  lot  of  building  was  just  to  come  back  to  normal  levels.  Another  reason  for  the  comeback  is  the  large  demand  for  apartments  from  ‘echo  boomers.’  This  demand  will  continue  to  increase  with  people  born  post-­‐1980  seeking  apartments  and  housing.  Current  young  people  are  much  more  likely  to  rent  throughout  their  20s  and  beyond  than  their  parents  at  the  same  age.  Additionally,  a  third  reason  for  the  multifamily  housing  comeback  is  that  young  adults,  and  some  older  adults  are  now  also  more  attracted  to  renting  versus  home  ownership.  This  affinity  towards  renting  is  due  to  lower  credit  scores  because  of  small  entry  salaries  and  a  slow  employment  market,  and  tight  underwriting  standards  for  mortgages.  All  of  these  factors  contribute  to  the  upswing  in  rental  housing.  Multifamily  housing  will  continue  to  hold  its  own  in  the  market  as  long  as  mortgage  rates  are  high  and  careers  remain  unstable.  Demand  for  apartments  and  rental  units  remain  high  and  the  market  shows  great  promise  for  continued  expansion  in  2014.    Giro  Katsimbrakis  has  twenty  years  worth  of  real  estate  industry  experience.  He  began  as  a  leasing  agent  for  Kiska  Developers  in  New  York  City,  and  quickly  worked  his  way  up  the  company  ladder  to  Director  of  Sales.  After  bringing  the  company  out  of  the  red  and  expanding  its  office  to  over  twenty  agents,  he  started  his  own  commercial  and  residential  real  estate  company,  East  River  Properties.  After  taking  over  the  Las  Vegas  and  Arizona  markets,  Giro  Katsimbrakis  relocated  to  the  Dallas/Fort  Worth  area  and  founded  DPW  Properties,  which  he  is  currently  in  the  process  of  expanding  nationwide.  Throughout  his  long  and  successful  career,  Giro  has  rehabbed  over  four  hundred  properties,  and  bought  and  sold  millions  of  dollars  worth  of  real  estate.