Urbanization and Housing
Urbanization is the name of the game recently, and multifamily is poised to benefit. IBISWorld research found that 22 million people moved to cities across the US between ’08 and ’13, more than 85% of US GDP is generated in cities (with the top 15 cities growing 2.2% in the past five years), and more than 80% of new jobs are created in urban areas. (Are constant Seinfeld reruns at least partially to thank?) The org anticipates that the apartment and condo construction industry will blossom as people flock to high-density areas. Revenue has grown 9.1% annually from ’09 to ’14, and IBISWorld predicts it’ll continue to grow 3.7% per year through 2019. Apartment rentals will grow 2.5% annually for the next five years, with profit reaching 33.2%.
