Saturday, May 21, 2016

Mortgage Bankers Association Reports Demographics and the Economy Drive Reduced Rental Housing Affordability

Lynn Fisher
WASHINGTON DC -- The Mortgage Bankers Association's Research Institute for Housing America (RIHA) released a new report, detailing how household formation by Millennials and the shift of many potential homeowners to a rental market during the depths of the Great Recession combined to create the current affordability crisis in rental housing.

The report, Diverted Homeowners, the Rental Crisis, and Foregone Household Formation, analyzes various supply and demand factors that have led to this crisis and provide detailed analysis of the shifts in homeowner and rental demand.

“Demand for rental housing has greatly outstripped supply, rapidly pushing vacancies down and rents up even as incomes fell. The supply is still trying to catch up with the demand,” said Lynn Fisher, RIHA’s Executive Director and MBA’s Vice President for Research and Economics.

“In the middle of the last decade, right as the Millennials were anticipated to begin forming their own households and increase demand for rental housing, the supply side of the market stalled due to the turmoil in credit markets. 

“At the same time, homeowners diverted from ownership piled into the rental market.  The single family rental sector certainly grew, but was only able to accommodate some of the increase.”

The analysis was conducted by Dowell Myers, Gary Painter, Hyojung Lee, and JungHo Park of the Sol Price School of Public Policy at the University of Southern California.

For a complete copy of the company’s news release, please contact:
Ali Ahmad

(202) 557-2727 

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