By: Lancaster Pollard
Published: March 7, 2016
In January of 2016, Lancaster Pollard sent an online survey to approximately 2,400 leaders in affordable and multifamily housing throughout the U.S. Over the course of two weeks, 172 respondents completed the online survey. The survey has a 95% confidence level and a confidence interval of 7.45, meaning that the differences in responses of 8 percentage points or more are meaningful.
Overall, the survey findings depict an active environment where a variety of capital projects are being pursued, particularly affordable multifamily housing new construction and substantial renovation projects. A majority of respondents (76%) own, develop or manage affordable multifamily or seniors apartments so the results are more representative of affordable housing than market-rate housing. Some of the key findings include :
- A majority of respondents (69%) indicated they are extremely likely to pursue a construction project in the coming year. Additionally, 11% indicated they are somewhat likely, resulting in a total of 80% who will likely pursue a new construction project in 2016.
- Sixty-eight percent of respondents indicated they were either extremely likely or somewhat likely to pursue a 9% low-income housing tax credit (LIHTC) project in 2016 and 64% of respondents indicated they were either extremely likely or somewhat likely to pursue a 4% LIHTC project in 2016.
- A meaningful plurality (41%) of respondents predict that affordable multifamily will be the element of housing that experiences the most growth in 2016. The least selected answer was market-rate independent living (IL) seniors housing at only 11%.
- A meaningful plurality of respondents (49%) indicated they expect the rent levels of their housing properties to increase by 1% to 3% in the coming six months.
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Lancaster Pollard’s survey of multi family and affordable housing developers finds an active environment where a variety of capital projects are being pursued, particularly affordable multifamily housing new construction and substantial renovation projects