Noting the high pace of multifamily housing starts for April, 2014, as MHProNews reported here May 16, 2014, Ted Wieseman of Morgan Stanley says tight mortgage credit will propel new household formation into the rental market and multifamily housing starts will be well above the historical average. The newsletter from the Manufactured Housing Institute (MHI) notes there is something more fundamental than just pent-up demand going on in the 39 percent rise in multifamily starts. Steve Blitz, of ITG Investment Research, says, “There are any number of factors behind this move to closer quarters: Baby Boomers tired of paying for lawn care; the demand for shorter commutes; and young people with credit good enough to pay high rent, but not quite so good to afford a down payment and qualify for a mortgage.”
