Single Family Housing Influencing CRE Outlook

Written By Marc Nicholson

How the Single-Family Housing Market Influences CRE​

Single-Family Housing Market Remains Tight​

  • Home sales surged from 2020-2021, pushing up values ​

  • Fed hikes lifted mortgage rates, but home prices did not fall​

  • Limited for-sale supply keeping home prices on upward path ​

Housing Supply Shortage is Persistent ​

  • Estimated housing shortage of 3.5 to 5 million units as of 2021​

  • Population growth and increased prevalence of single-person households continue to bolster needs for new housing​

Rental Needs Growing, Will Flow Into CRE Space Demand ​

  • Monthly cost gap between homeownership and renting at a record high​

  • Given a soft-landing and a growing young-adult population, pent-up housing demand should accelerate household formations​

  • As new households are formed, they bolster retail consumption, storage space needs and demand for industrial space ​

*Through 2Q​
Sources: Marcus & Millichap Research Services, RealPage, Inc., Freddie Mac ​

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Marc Nicholson
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