What is our three year outlook for owners of apartment buildings? Well, according to Mark Humphreys CEO of Humphreys and Partners LP as quoted in the February Issue of Multi Family Housing News;– The last half of 2010 will be strong. 2011 will be really good and 2012 will be awesome. The primary reason for this optimism is that there is no supply and increasing demand.

There are three driving forces involved:

First, the annual rate of construction for new apartment units has slowed to only 60,000 units. That is nothing compared with a normal rate of 350,000 units per year.

Second, there are 70 million echo boomers who will be graduating from college over the next few years and most of them will be living in apartments.

Third, there is no longer any easy mortgage money available for buying houses. Single family houses are the primary competition for apartment buildings. If people can not get a mortgage to buy a house they are more likely to rent an apartment.

This triple whammy of no supply, 70 million kids who need a place to live and no money to buy houses will create a perfect storm. In the year 2012 we expect to see the largest apartment boom in the history of the United States. Now is the time to buy Apartments.