Are We In A Housing Market Bubble?
Housing Supply Shortage Will Support Apartment Demand
Are We Facing Another Housing Bubble?
SF home prices up 15% YOY; Up 38% from two years ago
Unlike overbuilding and speculation leading up to Financial Crisis, housing has been underbuilt recently
Lack of housing units weighs on household formation, creating pent-up demand and driving price growth
Homeownership Becoming Increasingly Unattainable
Leading up to the pandemic, about half of households could afford a median priced home
Skyrocketing prices have made the same home affordable to roughly 26% of households
Rising interest rates could further shrink this number
Apartments Remain an Affordable Alternative
Average Apartment rent remains $638 lower than median home payment; rose at half the rate over last 2 years
Housing shortage and demographic trends will sustain low vacancies and rising rents
Investors can expect aggressive bidding for Apartment properties despite rising interest rates
*Forecast
Forecast using Moody’s June 2022 baseline forecast
SF=Single-Family, MF= Multifamily
Sources: Marcus & Millichap Research Services, U.S. Census Bureau, RealPage, Inc., Moody’s Analytics