NEWS FROM IBS MULTIFAMILY DEMAND HIGH, BUT FINANCING HARD TO FIND
Things could be looking up for the multifamily housing market this year. Provided, of course, that credit is available to help builders keep up with rising demand. “I think 2011 will be better for multifamily,” said David Crowe, chief economist for the National Association of Home Builders. “I’m expecting to see a 16% increase in ’11 over ’10.”
Speaking to journalists at the 2011 International Builders’ Show, Crowe estimated there will be 114,000 multifamily starts in 2010, while ’11 will come in at 133,000. That’s good news for an industry seeing a rapid rise in demand.
“I’ve been in this business for about 25 years, and I’ve never in my career seen such pent-up demand and stability in the apartment market around the country,” said Jay Jacobson with Wood Partners, a Florida-based developer. “It’s darn near impossible to get a mortgage these days. That’s pushing people into rentals.”
However, while demand is high, money remains largely unavailable to apartment builders. “The money is there for hybrid companies like
ourselves...the larger, private multifamily developer,” Jacobson said. “The traditional private sector guys— that’s the small, regional company that wants to go out and borrow money for one project or two projects—I don’t know how those guys are surviving.”
Bob Greer of New Jersey-based Michaels Development Co agrees, saying demand far outweighs his company’s ability to satisfy. Michaels Development specializes in affordable housing and has recently seen a substantial drop in investors.
“We’re very excited about the future,” Greer said, “but we’re concerned about the availability of equity and capital funds. But we are restructuring our organization in order to continue to survive and produce affordable housing.”
Title Sponsor Booth sales now open! Only 90 spaces – Always sells out!
Associate members are invited to exhibit in GHBA’s members- only trade show coming to the Sam Houston Race Park on Thursday, November 17, 2011. Just $650 each, all booths include pipe-and-drape, skirted table and booth sign. Builders, remodelers and developers attend the Expo for free to see the latest products and services. Exhibitors and attendees are eligible for hourly prize drawings, including chances to
win cash in the wildly popular Money Ball Horseracing Game sponsored by Builders Post-Tension, Inc. Complimentary food and bar tickets provided by the Custom Builders Council and Suncoast Post-Tension.
Download the floor plan and show contract at www.
GHBAshows.com. For more info contact show director Lyn Foster at 281-635-3673;
LFoster@ghba.org.
GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE | HOUSTON BUILDER | MARCH 2011 25
PRODUCTEXPO2011 9th Annual GHBA Builders Post-Tension Inc 403 RICHEY RD. HOUSTON, TX 77090
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