Freddie Mac: Multifamily situation will improve

The multifamily market should improve in the next few years.

Market conditions for property management companies will improve in the next few years, as the multifamily situation should strengthen, according to a report from Freddie Mac.

Rental units should increase by approximately 1.7 million by 2015, and this is due to multiple factors. The level of homeownership dropped in recent months, mainly due to the economic situation and continued foreclosures. With this in mind, the report outlined that homeownership should drop by as much as two percentage points with the current recovery rate.

"The research supports the optimism that currently pervades the multifamily market," said David Brickman, senior vice president of Freddie Mac Multifamily. "It confirms that multifamily is a bright spot in in the real estate market and the economy more broadly, and it will likely continue to shine for quite some time."

In the past five years, single-family rental setups grew 16 percent, which ends up closer to 3 million units. Additionally, the report said rental demand should pick up at a rate higher than in the past. Between 1 million to 1.6 million new renters could join the market during this period.

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