Posts by David Brickman
David Brickman is the executive vice president for the Multifamily Business. As head of Multifamily, Brickman is responsible for customer relations, product development, marketing, sales, loan purchase, asset management, capital markets, and securitization for the company’s multifamily business, which includes the flow mortgage, structured and affordable mortgage, CMBS and low-income housing tax credit portfolios. The total multifamily portfolio was $180 billion as of March 31, 2013. He is a member of the company’s senior operating committee and reports directly to CEO Don Layton.
Given current trends in renting and multifamily rental-housing inventory, apartment demand should exceed supply for years to come. New construction by itself won't fill the gap. Additional investment needs to be made in existing units to keep them in active inventory. As part of this, there is a growing need to direct "flexible" capital into renovating, preserving, and, in some cases, transforming the nation’s aging rental-housing stock.
Significant debate around multifamily housing policy focuses on the question of whether the federal government should support affordable multifamily rental housing and, if so, how the government should encourage private capital to flow toward it. While important, that question tends to overshadow the equally important, but more nuanced, question of what the need is for affordable housing, how to help meet it most effectively, and what trade-offs come with choosing one policy approach over another. The definition of what an affordable housing unit is, and what makes any given unit affordable – the rent level, tenant, or income level in the surrounding area – is central to the answer.
A fairly typical pattern for American households for decades has been much the same as my own experience. I grew up in an apartment (in New York City) and lived in apartments throughout college, graduate school, and my first few years in the workforce; my wife and I purchased our first house shortly before we had our first child. However, subtle signs indicate that a new pattern may be emerging.
More than one-third of U.S. households rent their homes, the most since 1997. Between 2004 and 2011, we gained 5.4 million net-new renter households. Today, 15 million households live in multifamily apartment properties (five or more units) and demand for rental housing is expected to rise for years to come, driven by a range of factors.