What’s the Future of US Apartment Demand?

How many units will be needed to meet demand through 2035 and what does that mean for the multifamily industry? NAA’s Paula Munger reveals all the figures from the latest research.

Paula Munger on apartment demand through 2035
Paula Munger, AVP of Industry Research and Analysis, NAA. Image courtesy of NAA

Apartment demand is forecast to moderate, but there are a few demographic and economic fundamentals that will contribute to healthy growth through 2035. This is one of the main aspects highlighted in the latest study commissioned by the National Apartment Association and the National Multifamily Housing Council.

Published by Hoyt Advisory Services and Eigen10 Advisors, the research paper presents two main scenarios for the U.S. multifamily market. In the more positive one, immigration rates increase, a more widespread return to the office occurs by the end of 2024 and inflation does not become ingrained in consumers’ behavior. In this case, some 3.7 million units will be needed by 2035 to meet demand, about 266,000 apartments per year on average. In the downside scenario, only 2.4 million new units will be needed, or 175,000 per year, due to lingering inflation, high homeownership rates, low immigration and persistence of remote work.


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Paula Munger, the expert leading NAA’s research efforts, joined Multi-Housing News Senior Editor Laura Calugar in a podcast episode that dives into what all these figures mean for the multifamily industry. Tune in to find out how demand for apartments will most likely vary across the country, what the impact of the aging population is going to be and who will be the winners by 2035!

Here’s a sample of what you’ll hear about in this podcast episode:

  • The key takeaway of the research paper (00:56)
  • The pandemic’s impact on the forecast (1:50)
  • What the demographics tell us (2:58)
  • The role of the aging population (3:57)
  • Immigration and its impact on apartment demand across the country (4:55)
  • The effects of rising interest rates and soaring home prices (8:27)
  • Potential scenarios (10:50)
  • Who will win by 2035 (11:40)

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