by Jay Madary, President and CEO
Much of the media coverage of the multifamily market so far in 2017 has focused on its slight softening in certain areas. And to be sure, certain U.S. metros have seen rent growth slow and occupancies dip ever so mildly.
But make no mistake: the future of the apartment industry is bright. That point was reinforced recently with the release of a study jointly commissioned by the National Apartment Association and the National Multifamily Housing Council.
According to the report, demand for apartment living is set to soar over the next decade for a variety of reasons, including declining home ownership and immigration trends. To meet that growing demand, 4.6 million new apartment homes will need to be built by 2030, the report says.
Renovating existing communities will be important, too. More than half of the existing national apartment stock was built before 1980, meaning 11.7 million units could need upgrading over the next 13 years, the study notes.
At JVM, we will be well positioned to meet this rising demand. We have always pursued renovations at our communities when we have determined they will make financial and strategic sense for us in the long-term. Right now, renovations are underway at JVM communities in Chicago, Cleveland and Kansas City (more on that later in the newsletter). These projects are a testament to our dedication to providing the state-of-the-art, highly amenitized communities sought by today’s residents.
And just as we are diligent and disciplined in our renovations, we will remain diligent and disciplined in our acquisitions. We will only purchase those communities that fit within our investment criteria and therefore best position us to optimize returns in the strong market ahead.
These are exciting times, both at JVM and within the multifamily industry, and we are appreciative of the chance to share our story with you. Please read on to learn more about the news we’re making and the thought leadership we’ve been providing. Thank you for your continued trust in JVM!