2017 Midwest Multifamily Outlook
Working in the multifamily arena as a commercial real attorney means watching national trends in financial movements, occupancy predictions and amenity trends, and apply for our clients.
Change is ahead in 2017. Three areas covered by Multihousing News are the areas to watch as the new administration takes over.
Availability of funds for new and refinance will change. Probably tighten.
Interest rates will rise.
Regulations will loosen if campaign promises are kept.
The Midwest growth curve of new multifamily complexes of all types could accelerate even if funds become more expensive. Demand remains in areas of population growth to right-size.
Saw the headlines on the Wall Street Journal beginning of the year - Luxury Apartment Boom Set To Fizzle in 2017- but a deeper dive looks at more traditional luxury offerings in the major cities.
What may be more the trend to watch instead of price of apartment is the trend of when will the Millennial generation finally purchase instead of rent. Where are Millennial Buying Homes? Smart Asset did the study - and Omaha was listed #10.
10. Omaha, Nebraska
Omaha rounds out our study of where millennials are buying homes. Omaha is the largest city in our top 10 and like other large cities, the number of homeowners is relatively low. In 2015, 29.5% of millennials in Omaha owned their own homes. That number is a jump from 28.1% of under 35s owning their homes in 2006. In fact, it’s the 10th-largest increase in our study.
Starts and ends with technology. Well stated in Building Design + Construction's Multifamily millennials: Here is what millennial renters want in 2017. It’s all about technology and convenience when it comes to the things millennial renters value most in a multifamily facility.
This study was funded by Schlage, so door locks might have look like they are skewing important. From a multifamily facility point of view, however, electronic locks have a great advantage to property managers. Security, reporting and lock change over make sense as lock manufacturers have been perfecting the technology.
Overall, 2017 outlook is positive for multifamily in the Midwest. Rents should stabilize. Population is increasing. And, if the owners keep pace with technology their units have the potential to compete and keep pace with the other factors.
About The Firm:
Smith Slusky is an outstanding group of attorneys based in Omaha, NE. Expertise in all areas of law with a concentration in commercial real estate, real estate development and business law. Smith Slusky has specialists in litigation and IRS tax resolution.