Affordability pressures continue to shape multifamily demand and rent-growth expectations, but the broader relationship between renter incomes, new supply and rents has improved, according to Mike Altman, CIO at Cortland, in an exclusive interview with IREI.
“There’s absolutely a segment of households under real affordability pressure, and we take that seriously in how we underwrite and manage our communities,” Altman said. “But broadly speaking, multifamily is more affordable today than it’s been in years.”
Renter incomes have continued growing, while the wave of new apartment supply that moved through the Sun Belt during the past two years has pressured rents, he said.
“The result is that our renter household today is spending a little over 20 percent of income on rent — the lowest share we’ve ever seen, and well inside the traditional affordability threshold,” Altman said.
Apartment rents can adjust relatively quickly to changes in
