All Articles

Q&A with Jay Martha: US multifamily market

Student housing

Jay Martha, Managing Director for TH Real Estate’s US Workforce Multifamily Housing Strategy, discusses the US multifamily market.

What is the size and scope of the US multifamily market?
Today, approximately 37% of all US households consist of renters, and the multifamily segment enjoys demand from a variety of consumers.* The fundamental drivers of growth remain strong, as millions of Millennials enter the rental market every year. They have delayed major life decisions, such as buying homes, and are far more mobile than their parents’ generation in terms of moving jobs. On the supply side, multifamily construction is increasing but remains well below the level of demand.

What markets are most appealing for US multifamily housing right now?
The largest 25-30 markets in the US are generally ranked by population size and number of households. Although not all of these markets make our target list, we currently have 115 equity apartment investments in 34 major Metropolitan Statistical Areas (MSAs), including 52 assets within the Workforce Multifamily Strategy which my team manages. Over the course of our 22-year track record in this sub-sector, we have invested in over 70 assets across c.40 primary and select secondary markets. This experience has provided us with insights into where to find the best opportunities and how to achieve geographic diversification at any given point in the cycle. Each market is extremely unique – especially considering they range in size from over 8 million to around 500,000 people – so we look at each city’s own set of drivers that impact real estate fundamentals. Some of our primary targets for our current Workforce Multifamily Strategy now include South Florida, Southern California, Minneapolis/St Paul, Baltimore/Washington DC, Boston, Dallas and Austin.

Q&A with Jay Martha

Download the full Q&A


*Source: 2015 American Community Survey, 1-Year Estimates, US Census Bureau. Updated 10/2016 Important Information: This document is intended solely for the use of professionals and is not for general public distribution. Any assumptions made or opinions expressed are as of the dates specified or if none at the document date and may change as subsequent conditions vary. In particular, the document has been prepared by reference to current tax and legal considerations that may alter in the future. The document may contain “forward-looking” information or estimates that are not purely historical in nature. Such information may include, among other things, illustrative projections and forecasts. There is no guarantee that any projections or forecasts made will come to pass. International investing involves risks, including risks related to foreign currency, limited liquidity particularly where the underlying asset comprises real estate, less government regulation in some jurisdictions, and the possibility of substantial volatility due to adverse political, economic or other developments. Past performance is no guarantee of future performance. The value of investments and the income from them may go down as well as up and are not guaranteed. Rates of exchange may cause the value of investments to go up or down. Any favourable tax treatment is subject to government legislation and as such may not be maintained. The valuation of property is generally a matter of valuer’s opinion rather than fact. The amount raised when a property is sold may be less than the valuation. Nothing in this document is intended or should be construed as advice. The document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation [or would subject the issuing companies or products to any registration or licencing requirements]. 150159-G-INST-AN-05/18

James Martha

James Martha

Managing Director, Head of Multifamily

James's biography