Steve Patterson, President of Related Development, says low single-family home ownership rates, which declined to 64.8 percent, according to US census data (the lowest level since 1995), along with a job market flooded with young workers (“millennial” generation) unable to afford ownership points toward a strong recovery for rentals.
Related’s SOFA-Delray, Town-Pembroke Pines, Doral View II and Town-University Drive all begin construction this month. With 4,700+ rental units in the pipeline for development scheduled for completion and/or groundbreaking during the next year, Related is in line with Patterson’s mission of delivering well located, highly amenitized apartments worthy of demanding residents in urban-core, class A luxury areas that appeal to professionals who used to buy homes.
“Related’s continued growth and sizable development pipeline in South Florida is driven by our belief in real demand,” he said. “In spite of a significant increase in apartment completions during the last two years, occupancies have held firm and rents are growing above the historic norm.
Axiometrics has labeled 2014 as the strongest year for multi-family since the market began to recover. Even then, 2014 multi-family development will barely reach pre-recession numbers.
“The market of millennials leaving their parent’s homes and starting their own households is growing rapidly, so there will definitely be more renters next year and the year after than today, and we intend to be ready with new luxury rental product for them to call home,” added Patterson.