decline in the Americ ican Homeownership ip homeownership rate - - PowerPoint PPT Presentation

• Every 1% de

decline in the homeownership rate translates to about one million new new re renters

• The homeownership rate in

America recently hit a 48 year low of 63% due to foreclosures, student loans, delays in marriage, and uncertainty about buying a home

60% 61% 62% 63% 64% 65% 66% 67% 68% 69% 70% 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Source: US Census Bureau Source: US Census Bureau

Americ ican Homeownership ip Rates in in a 10-Year Slid lide 69% 63%

6 6 million n new new rent enter ers in in the past ten ye years

Source: Wall Street Journal, July 2015

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0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sources: Fannie Mae, Freddie Mac and Urban Institute. Note: Multifamily serious delinquency rate is the unpaid balance of loans 60 days or more past due, divided by the total unpaid balance

Serio ious Delin linquency Rates

Mu Mult ltif ifamily ily vs. Sin ingle le-Family ily Lo Loans, 2005-2015 2015

Freddie Mac Multifamily Loans Freddie Mac Single Family Loans

• Freddie Mac single-family

loans peaked at 4.0% while delinquency for multifamily loans hovered around 0.4%

• Multifamily delinquency

rate…at its peak…was 90% lower than the residential rate in the worst downturn since the Great Depression

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DEMOGRAPHICS ARE DRIVING MULTIFAMILY HOUSING DEMAND

Both baby boomers (77 million) and echo boomers (80 million) are flocking to rental housing

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 from 1932 from 1932-2004 (in years) 2004 (in years) Source: US Census Bureau

US Regis istered Bir Births 1933-2004 2004

Post WWII Ba Baby Bo Boom Echo Ba Baby Bo Boom

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THE MAJORITY OF ECHO BOOMERS RENTING

• Echo boomers

are the nation’s largest demographic group

• ~54% are renting

32.0 34.0 36.0 38.0 40.0 42.0 44.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Chandan, US Census Bureau

Renter Household lds by Quarter

(in (in millio illions)

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FAVORABLE IMMIGRATION TRENDS

• US immigration

continues to grow

• US immigrants,

rent more often than they own, and rent for longer periods

• f time

50 100 150 200 250 300 350 400 450 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: 37th Parallel Properties (37parallel.com)

Demographic ic Shif ift due to Ma Mass Immig igratio ion

(in millions)

Growth Caused by Post- 1970 Immigration Growth from Population Already in US, 1970

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THE RECIPE

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