Shortages of 2021, apartment development, labor, vocational skills
In September, apartment vacancies fell to an all-time low of 2.7 percent, leading to the fourth month in a row of record lows. According to RealPage data, new lease demand climbed by 50.5 percent in the year ending September 2021, with apartment resident retention increasing to 58. percent, an all-time high. Last month, lease renewals soared, keeping vacancy rates low.
There is an extreme shortage of housing. While housing was in a supply shortage for low-income households previously, it is now where there is more demand than supply across all income levels!
On top of this, there is a shortage of skilled construction labor nationally. There is a need for 740,000 new workers each year over the next 3 years to keep up with demand according to the National Association of Home Builders (NAHB).
The key challenges are related to recruiting, training and retaining workers.
Overall there is a middle-skills crisis. Our nation used to put a focus on vocational skills and training, and we are now in a massive shortage of skilled workers in this spectrum. With the levels of student debt, we hopefully will see an increase in these middle-skill workers. My hope is over the next decade we see a rise in middle-skill workers, and more small businesses being started to help solve for this problem. During the pandemic, work has been flowing to larger corporations and organizations.
This is why at Growth Vue we focus on value add apartments. There is a massive demand for affordable housing, and with the shortage of labor workers, we have the advantage to work on rehabbing, repairing, and improving the current supply. This allows us to play a role in improving the standard of living in high-growth communities.
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