Affordability pressures continue to shape multifamily demand and rent-growth expectations, but the broader relationship between renter incomes, new supply and rents has improved.
“Multifamily is more affordable today than it’s been in years,” says Mike Altman, CIO at Cortland, in an exclusive interview with IREI.
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.
“The result is that our renter household today is spending a little more than 20 percent of income on rent — the lowest share we’ve ever seen, and well inside the traditional affordability threshold,” says Altman.
Apartment rents can adjust relatively quickly to changes in supply and demand, while home prices have been slower to respond as homeowners with low-rate mortgages remain reluctant to sell, keeping for-sale inventory constrained.
“We believe that responsiveness
