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

Every 1% de decline in the • Americ ican Homeownership ip homeownership rate translates Rates in in a 10-Year Slid lide 70% 69% to about one million new new 69% re renters 68% The homeownership rate in • 67% America recently hit a 48 year 66% low of 63% due to 65% 64% foreclosures, student loans, 63% delays in marriage, and 6 6 million n new new rent enter ers 62% uncertainty about buying a in in the past ten ye years 63% 61% home 60% 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Source: US Census Bureau Source: US Census Bureau Source: Wall Street Journal, July 2015 1/19/17 1

Serio ious Delin linquency Rates Freddie Mac single-family • Mu Mult ltif ifamily ily vs. Sin ingle le-Family ily Lo Loans, 2005-2015 2015 loans peaked at 4.0% Freddie Mac Multifamily Loans Freddie Mac Single Family Loans while delinquency for 4.50% multifamily loans hovered 4.00% around 0.4% 3.50% 3.00% Multifamily delinquency • 2.50% rate…at its peak…was 2.00% 90% lower than the 1.50% 1.00% residential rate in the worst 0.50% downturn since the Great 0.00% Depression 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 1/19/17 2

DEMOGRAPHICS ARE DRIVING MULTIFAMILY HOUSING DEMAND US Regis istered Bir Births 1933-2004 2004 Both baby boomers ( 77 million ) and echo Post WWII Ba Baby Bo Boom Echo Ba Baby Bo Boom 4,500,000 boomers ( 80 million ) 4,000,000 are flocking to rental 3,500,000 3,000,000 housing 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 from 1932-2004 (in years) from 1932 2004 (in years) Source: US Census Bureau 1/19/17 3

THE MAJORITY OF ECHO BOOMERS RENTING Echo boomers Renter Household lds by Quarter • (in millio (in illions) are the nation’s 44.0 largest 42.0 demographic 40.0 group 38.0 ~ 54% are renting • 36.0 34.0 32.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Chandan, US Census Bureau 1/19/17 4

FAVORABLE IMMIGRATION TRENDS • US immigration Demographic ic Shif ift due to Ma Mass continues to Immig igratio ion grow (in millions) Growth Caused by Post- 1970 Immigration 450 • US immigrants, Growth from Population 400 Already in US, 1970 rent more often 350 300 than they own, 250 200 and rent for 150 longer periods 100 50 of time 0 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: 37 th Parallel Properties (37parallel.com) 1/19/17 5

THE RECIPE 1/19/17 6