Top Five Takeaways from NMHC's 2017 Annual Meeting
With that in mind, the other top takeaways we noted include:
1. Tax Reform: The multifamily industry will work with Congress and support tax reform that promotes economic growth and investment in rental housing without unfairly burdening apartment owners and renters. Areas for consideration include:
- • Maintaining Like-Kind Exchanges
• Protecting Depreciation Rules from Extending Beyond the Current 27.5-Year Period
• Protecting Flow-Through Entities from Harmful Tax Burdens
• Retain Business Interest Deduction
• Shelter the Low-Income Housing Tax Credit (LIHTC)
2. Value-Add Strategy Endures: The country’s aging apartment stock aligns well with the national sentiment for affordability and job growth. Markets where there is job - and therefore population – growth is key to any value-add strategy.
3. Need for Affordability: In the current economic environment, it is very difficult to buy a single family home, which is putting pressure on multifamily demand. Investors continue to look toward housing stock that is more affordable for consumers, while simultaneously less costly for investors.
4. Ethnic Diversity, Women & Leadership: Companies that include people of color and women in their senior executive ranks enjoy better economic performance than those who don’t. However, only 20% of public companies have women in these positions. Diverse companies also attracted the most talented employees.
5. Baby Boomer Rental Boom Coming: 81% of Americans over the age of 65 own their home. 49% of these homeowners are considering selling their homes and renting in the near future. 64% of Baby Boomers expect to move one or two more times during their lifetime.