Today, 56 percent of the world’s population (4.4 billion inhabitants) live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050. The speed and scale of urbanization bring challenges, such as meeting accelerated demand for multifamily housing.
Housing demands rising
The multifamily industry is one of the oldest forms of real estate investment and the most popular. The market is wide and varied, with more than 43.9 million residents living in multifamily housing.
Nashville, Tenn.’s multifamily market is a prime example of an urban city with a growing population that must adapt to this demand. According to the moving and storage company PODS Enterprises’ second annual relocation trends report, Nashville ranked third among the most popular moving destinations over the last year. With this population influx, the city must adapt to house all these people. The Nashville multifamily market has experienced a fast-paced recovery due to the metro’s diverse economy and bid-name corporate relocations and expansions. This has drawn the attention of both renters looking to leave overpriced metros and investors interested in exploring the expanding city’s potential.
Adaption is necessary for solution
Construction companies must take charge of housing demands with multifamily housing projects to support this explosive growth in metropolitan communities. For example, Hardaway Construction has taken control of housing demands with multifamily housing projects to support this explosive growth.
The recently completed Accent Edgewood Apartments project in the Wedgewood-Houston neighborhood holds 236 units and has added to the development of this up-and-coming neighborhood. We have built over 20 other multifamily housing developments to help accommodate the explosive number of people moving to Nashville over the past couple of years. Our staffing has also increased by 25 percent this year due to the increase of projects needed by the popularity of the Nashville market.
The impact of redevelopment restoration
The city of Nashville is ever-changing. The city is booming, with construction on every corner. With the high demand for real estate, many overlooked areas are transitioning to trendy, up-and-coming neighborhoods that benefit the economy while bringing in a variety of development and new amenities.
There has been rapid growth in the Wedgewood-Houston neighborhood because of its urban appeal with its galleries, breweries and distilleries. The area has experienced a redevelopment restoration over the last few years as many residents, families and businesses have flocked there. There is a strong appeal due to its location only two miles south of downtown and boasting lower rent and housing prices relative to other Nashville neighborhoods and areas.
Taking charge of growth and demand
People moving to urban cities like Nashville are looking for quality of life, affordability, comfort, updated and clean-living space and access to amenities in a multifamily community. The multifamily housing market is expanding, with more than two million units built around the country in the last decade. The tremendous increase in the popularity of renting is fueling construction growth.
A shortage of available homes has contributed to the low vacancy rates. As a result, rents are rising to new heights and many families remain in their rental apartments. This has prompted investors to make large bets on rental properties, pushing up demand for multifamily properties, which promise faster scaling and are easier to finance in some situations.
A persistent high rental demand versus supply is a driving element behind the increase in multifamily projects. The housing scarcity has accelerated the construction of new housing. Forward-thinking multifamily investors may earn reasonable profits while posting the supply of market-rate homes in the coming years, lowering renter costs in the bloated rental market.
Construction companies must takecharge of housing demands with multifamily housing projects to support this explosive growth in metropolitan communities.
David Frazier is the CEO and owner of Hardaway Construction. For nearly 100 years, Hardaway Construction has remained Nashville’s respected construction veteran. The company provides pre-construction, general contracting, design-build, construction management, and building information modeling services. Built on a legacy of quality, honesty, and integrity, Hardaway Construction provides premier construction services to clients across all major industries