Article
Richard J. Voelker
Commercial Property Consultant
An Overview of Investing in the Rental Housing Market in the U.S.
in 2005
Written by Richard J. Voelker
Published by the Royal Institution of Chartered Surveyors, June 2005
The rental housing market in the U.S. is interchangeably referred to as either the multi-family or apartment industry. Individual properties are often referred to as "communities." We will look at investing in existing apartment communities in the U.S. from the perspective of a private or institutional equity investor.
This segment of the housing market generally includes dwellings of 20 units or more that make up approximately 30% of all residential housing in the U.S. "Single-family detached" and "owned" housing make up the remaining 70% of all U.S. residential dwellings.
U.S. apartment communities are segmented into either "market-rate" or "government subsidized" properties. This article addresses existing market rate communities, the largest segment of the apartment market, as illustrated below.
The Rental Housing Market in the U.S.:
| Types of Communities: | Communities | Apartments | Value |
| Market Rate | 270,000 | 9.5 million | $800 billion |
| Subsidized | 30,000 | 1.4 million | N/A |
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| Total | 300,000 | 10.9 million | $800+ billion |
| Annual New Construction: | |||
| Market Rate | 8,500 | 150,000 | $15.1 billion |
| Subsidized | 1,700 | 13,100 | N/A |
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| Total | 10,200 | 164,000 | $15.1+ billion |
For a copy of the complete article, contact Richard J. Voelker
at richard@voelkerconsult.com
