Leadership in the Future Multifamily Market
November 1, 2011
Last month, we held our Multifamily Leadership Conference in Reston, VA to have a conversation about the future of the multifamily market. We had a great series of discussions that included leadership from your company and a diverse group of speakers including our CEO, Ed Haldeman, as well as economists and industry analysts. The industry is preparing for growth, with increased demand for rental housing, recognition of our market sector as one of the economy's bright spots and increased business volume for all of us, in 2011 and looking forward. Over the next 10 years, it is projected that upwards of $1 trillion in capital and as many as 10 million additional apartment units may be needed to meet rental housing demand.
Growth in the multifamily market is influenced by a change in demographics and a change in consumer attitudes toward renting. The single family housing crisis has both created additional renters from displaced households, but also changed perceptions of the flexibility and financial benefits of renting. New rental households include baby boomers trading homeownership for renting, immigrants and 20-34 year olds forming new households. With limited construction and increased demand, many markets have seen growth in average rents. These positive trends have renewed interest in our sector from a range of investors who are now returning to invest in the multifamily market.
As we find ourselves in a market that is growing and evolving rapidly, I want to share with you how our priorities and areas of focus will help to better support our industry. Our service delivery is the highest priority in the short-term to help us to keep that momentum going with you. We've heard your input through surveys, Advisory Councils and events like the Leadership Conference. As a result, we're working hard to improve your experience by making our processes more efficient, increasing our flexibility and improving our technology.
Over the last two years, we've redefined our business through the development of our securitization model and the launch of our K-certificates program. The strong performance of our securities translates into highly competitive mortgage pricing for borrowers and generates strong investor interest. With our securitization focus, we can continue to be a reliable and competitive source of funding for your business.
As we prepare for growing demand, I want to maintain the excellence of our execution and drive innovation where we can improve on our service delivery. In turn, we ask for your ongoing commitment to our business relationship. This commitment – to meeting our standards and delivering quality results – will help both of our profitability and growth. The multifamily business is changing and growing, and we can't succeed without you. We look forward to working closely with you over the coming year as we prepare for the future of multifamily housing finance, and to greater success – for our organizations, our market and economy, and our communities.