Renters of 5 or more units account for 15 million in U.S. households and according to a Fannie Mae executive, that number is expected to grow.
The reasons that are driving the increase in rental housing affordability include demographic trends, household formations, now higher credit standards for mortgages and the overall attitude about home ownership post-housing crisis. This information was confirmed a few weeks ago in a blog post by Senior Vice President David Brickman of Multifamily at Freddie Mack.
There is also some concern about the availability of multifamily housing in some parts of the country where the demand greatly outweighs the supply. Over half of all renters spend 30% of their income on housing, which is an increase from the 40% of income spent in 2000.
Brinkman asserted that Freddie Mac is dedicated as always to supporting affordable rental housing. “Working closely with multifamily property owners/borrowers and our network of lenders, Freddie Mac Multifamily structures financing in a way that lets us offer very competitive, long-term rates,” he stated.
So how does Chattanooga factor into all of this? The multifamily market is booming due to large companies opening their doors for business and relocating new families to our area from all over the world. They are moving to Chattanooga in droves and bringing their families with them when they relocate which is great news for Chattanooga multifamily investors.