Freddie Mac’s EVP Multifamily Business, David Brickman said today, “Finding a solution to the affordable rental housing crisis is the most critical issue our industry faces.”
In a new article, Freddie Mac said that its Multifamily unit is on track to beat old records to purchase approximately $55 billion and securitize over $50 billion in loans. They believe the multifamily industry may grow another five to ten percent next year.
However, many chalenges face the industry.
Freddie Mac said that rents are likely to rise in most markets and they do see the national shortage of affordable rental housing continuing.
According to Freddie Mac, “Large percentages of Millennials (68 percent), Gen Xers (70 percent), and Baby Boomers (62 percent) live payday to payday or can’t afford basics, according to our latest Renter Profile. At the same time, CoStar Group, a commercial real estate information group, recenty estimated the country has only 5.6 million affordable rentals left.
Over half of them are more than 30 years old, and existing stock is reportedly diminishing quickly. In addition, the Joint Center for Housing Studies says there are over 21 million cost-burdened renters in the U.S. and that their numbers are expected to rise another 4.4 million by 2025.”