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American Dream Shifts, Multifamily Market Benefits

The housing market is showing signs of cooling off. Yet, housing demand and affordability has emerged as a hot topic.

Marcus & Millichap’s Hessam Nadji told CNBC that the shift now being experienced in the housing sector can be tied to a consumer trend toward renting, primarily, as well as a rebalancing of supply and demand.

He points out that home prices appreciated on average 14% in the top 10 markets over the past 12 months. Overall, prices went up 5% nationally, which Nadji says shows “clearly there’s overheating on the prices going on among certain markets.”

One of the key factors driving prices up is an undersupply of new construction. Another is consumer behavior, which is now leaning more towards renting. Nadji notes, that’s a key reason the apartment rental market is showing tremendous strength, while the single family market is less affordable.

Part of that is being driven by the high cost of owning in markets where job growth is occurring. But, it is also playing off changes in how consumers view buying versus renting.

Nadji says the American Dream today may be “as much about finding a great apartment near a great job where you don’t have commute or get in a car, as it is about buying your first time home.” That shift, coupled with tax law changes that provide less incentive to buying an entry-level home, has resulted in fewer first-time home buyers showing up among today’s home buyers than historically was the case.

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Inside The Story

Read more at Marcus & MillichapConnect With Marcus & Millichap’s Nadji

About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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