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General Obsolescence – Older properties are removed for a variety of reasons. It’s having a greater impact, possibly enhanced due to the abundance of 1960s and 1970s product.

Site Redevelopment – properties might be scrapped from ground up development of new Class A communities. This is particularly driven by urban infill developments and gentrification of older neighborhoods.

Value Add Upgrading – some properties are upgraded enough to move out of the price range of most workforce multifamily housing renters.

NOAH (Naturally Occurring Affordable Housing) Process is Slower – Organic creation of workforce multifamily housing has been slower due to the large volume of value-added activity and the high quality product that has been built in the past decade.

Available Older Stock Somewhat Limited – the amount of 2000’s product has kept pace with the late 1990s, but the first half of the 2010’s has produced lower levels of new supply.

 

(Source – 2018 CBRE The Case for Workforce Housing Report)