Freddie Mac’s mid-year multifamily outlook reports vacancy rates are at a 13-year low, and that trend will continue through 2015, says Steven Guggenmos, Senior Director, Multifamily Investments and Research at the government-sponsored enterprise (GSE). He tells MHProNews the strong demand in part is due to employment gains among young adults. While an estimated 3.9 million households were not formed due to the Great Recession, over the next decade an estimated 440,000 multifamily units may be needed annually to meet the pent-up demand, according to worldpropertychannel.com. He says, “Absorption of multifamily units was very strong in the beginning of 2014. By the end of 2014, we expect vacancy rates to turn the corner as new supply is delivered to the market.” He says the demand for multifamily units will exceed pre-recession levels. ##

(Photo credit: Art Illman/wickedlocal.com–modular apartments being sited in Natick, Massachusetts.)