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Preparing for a Rental Housing Boom

Memorandum

To: NMHC Membership
From: Doug Bibby, NMHC President

RE:2006 Annual Report: Preparing for a Rental Housing Boom

Date: March 5, 2007

In 2006, smart investment money went to apartments as the sector moved from recovery to expansion. Fortunately for us, the future looks equally bright. Profound social, cultural and demographic trends are reshaping the way we live, work, and play. In the process, these trends are paving the way for a rental housing boom unlike anything seen in recent history.

For the first time in decades, econmoic conditions--notably expensive housing prices and rising interest rates--favor rental housing over for sale housing. At the same time, a wave of young adults and immigrants entering the housing market will drive apartment demand to new highs in the coming years.

The momentous forces of change underway in our society will require apartment firms to rethink what they build, where they build and how they build. This year's National Multi Housing Council annual report explores four key factors that are already changing the rental housing sector: demographics; proximity; sustainability and affordability. In 2007, NMHC will undertake several exciting initiatives to leverage these changes to pursue our mission of promoting the apartment industry.

The 2006 Annual Report also offers an economic review and outlook, a summary of our major legislative and regulatory accomplishments, information on new NMHC guidance documents and benchmarking surveys, a 2007 meetings calendar and a summary of all the NMHC tools available to overcome opposition to apartments.

We look forward to serving you this year, and we welcome your input into our activities at any time.



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