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Week of November 10, 2003

Front Page

Housing and Economics

* Ongoing Immigration Influx Adding to Housing Demand
* Eye on the Economy

Multifamily

* Immigration Favorable for Demand for Rental Apartments

Business Management

* Improved Business Systems Yield Increased Productivity, Profitability

Building Quality

* KB Home First Big Builder to Adopt Housing Quality Program Nationally

Research

* New Technologies Can Reduce Residential Energy Consumption
* LifeWise Home Accommodates Aging in Place

Seniors Housing

* Free Booklet, Web Site Offer Strategies for Aging in Place
* There Are Five Easy Ways to Integrate Aging-in-Place Into New Home Construction

Small Builders and Remodelers

* Reducing Overhead Can See Businesses Through Lean Times
* Some Prefer Field Employees, Others Like Trade Contractors
* Remodelers Earn Top Industry Designation From NAHB

Labor

* HBI Job Corps Students Participate in ‘Make a Difference Day’

Women's Council

* Educational Programs Can Spice Up Your Meetings

Commercial Builders

* Revision of MasterFormat for Non-Residential Specifications Entering Final Phase

Building Products

* Building Science Firm Offers Services to Production Builders

Building News Coast To Coast

Association News & Events

* Fire Relief Fund Announced by Southern California Builders
* Boost Your Marketing Through These Awards Programs
* Calendar of Events

NBN Back Issues

 

Immigration Favorable for Demand for Rental Apartments

Low interest rates have hurt the multifamily housing industry by drawing away renters who are finding that with lower-cost financing they can now afford to become home owners, but those lower rates are providing some benefits for the industry as well, according to NAHB President Kent Conine.

In remarks earlier this month to the M/PF Research Texas Apartment Markets Conference in Dallas, Conine added that demand for apartments will start picking up as the economy begins generating more jobs and that immigration will be a significant plus in certain multifamily markets.

Currently low interest rates “are fueling the for-sale condo market,” he said, “and they’re making it more affordable for us to finance construction of new apartments.”

Observing that apartment production has remained “very solid” this year despite weakening demand, Conine said that, “We apartment builders are basically looking across the divide to the time when mortgage rates float back up and the job market starts showing more strength.”


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The long-term outlook for apartments is also being bolstered by immigration, and Conine made several observations about this factor:

  • Most immigrants who arrive in the U.S. are between the ages of 15 and 34, which are prime years for renter households.
  • In some metro areas, households who have moved to the U.S. within the past eight years account for one-fifth of the multifamily rental market.
  • In San Jose, more than 26% of the rental market is comprised of recent immigrants; that share in Dallas and Houston is about 14%.

NAHB is forecasting about 341,000 multifamily starts this year, down slightly from 2002. Declines on the market-rate rental side of the industry should produce some softening in production next year, he said, when starts are projected to total 320,000 units.

Market-rate units make up about half of the industry’s output; the remaining half of production is split fairly evenly between condos and subsidized units.


2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala

Plan to attend the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information.

NAHB Multifamily Offers Three Multifamily Designations

NAHB Multifamily offers two designations for property management professionals. The Registered in Apartment Management (RAM) designation and the Advanced RAM designation provide superior training in the field. NAHB Multifamily also offers the Certified Leasing Professional (CLP) designation for those interested in sharpening their multifamily leasing and sales skills. Click here for more information.

Make Your Connection With www.nahb.org

Make your connection to the latest housing industry news and information with www.nahb.org — the official public and members-only Web site of NAHB.

Log in today to register for educational seminars, meetings and networking events; find important economic and housing data; and learn the latest developments in NAHB’s efforts to promote housing. It’s all available to you 24 hours a day at www.nahb.org. Just click the "Member Log In" button to get started.

If you are a member and need information about NAHB products and services, use the NAHB Staff Contact Directory to look up the direct telephone extensions for NAHB staff experts.
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