How the Single-Family Housing Market Influences CRE
Single-Family Housing Market Remains Tight
- Home sales surged from 2020-2021, pushing up values
- Fed hikes lifted mortgage rates, but home prices did not fall
- Limited for-sale supply keeping home prices on upward path
Housing Supply Shortage is Persistent
- Estimated housing shortage of 3.5 to 5 million units as of 2021
- Population growth and increased prevalence of single-person households continue to bolster needs for new housing
Rental Needs Growing, Will Flow Into CRE Space Demand
- Monthly cost gap between homeownership and renting at a record high
- Given a soft-landing and a growing young-adult population, pent-up housing demand should accelerate household formations
- As new households are formed, they bolster retail consumption, storage space needs and demand for industrial space
*Through 2Q
Sources: Marcus & Millichap Research Services, RealPage, Inc., Freddie Mac
Watch Video Below: