Five Trends Impacting Existing Workforce Multifamily Housing Supply

1. General Obsolescence - Older properties are removed for a variety of reasons. It's having a greater impact, possibly enhanced due to the abundance of 1960s and 1970s product.
2. Site Redevelopment - properties might be scrapped from ground up development of new Class A communities. This is particularly driven by urban infill developments and gentrification of older neighborhoods.
3. Value Add Upgrading - some properties are upgraded enough to move out of the price range of most workforce multifamily housing renters.
4. NOAH (Naturally Occurring Affordable Housing) Process is Slower - Organic creation of workforce multifamily housing has been slower due to the large volume of value-added activity and the high quality product that has been built in the past decade.
5. Available Older Stock Somewhat Limited - the amount of 2000's product has kept pace with the late 1990s, but the first half of the 2010's has produced lower levels of new supply.

(Source - 2018 CBRE The Case for Workforce Housing Report)