While sales and rental markets have softened these last two years according to the National Association of Realtors, Charles Blumenkehl, managing partner of Blue Asset Management LLC and CEO of Blumenkehl Properties, managers of investment properties throughout New Jersey, says his company is seeing more demand for residential rental properties and believes this trend will dramatically increase in the next few years.
Blumenkehl points to statistics released by the National Association of Home Builders at the International Builders Show, which had only 114,000 multi-family homes started in 2010, which the Association states is less than the number of multi family homes removed from the market during the same period. NAHB further stated that while they anticipate another 133,000 multi family units will be started in 2011, they too predict that number will be far less than the expected demand.
According to Blumenkehl, “With a large part of the population reaching rental age, combined with the number of home share and live at home arrangements already in place due to the economic contraction of the last few years, the demand for rental housing is becoming greater as the country moves toward economic recovery.” Blumenkehl, whose properties have a 96% occupancy rate in New Jersey at current, continued, “Rents have already began climbing in some of our markets, and a shortage of new multifamily units coupled with a rise in prime renter-age households will give landlords clout they haven’t seen since we emerged from the last housing recession in the mid-1990s.”
Blumenkehl Properties and Blue Asset Management LLC are managers and buyers of performing and non-performing mortgages and distressed and investment properties in New Jersey. For more information about Blue Asset Management or Charles Blumenkehl, log onto the company website at www.blueassetmanagementllc.com