As an architectural firm specializing in housing and multifamily design in the Charlotte and Carolinas region, we are greatly encouraged by the positive vibe that continues to pulse through our industry.  Multifamily Housing (primarily on the Apartment rental side) is back on the rise!

Last week, I attended the “Interface Carolinas” conference at the Charlotte Convention Center.  Many wonderful speakers and panelists gave their opinion on the state of the economy and whether or not we were “out of the woods” now.  Keynote Speaker, Mark Vitner, with Wells Fargo Securities, suggested that we are indeed starting to see better days.  The banks, both big and small, are lending again.  Loans up to 70 and 75% are being structured now – giving developers more hope and tangible assistance.

Carter Seigle, with Wood Partners here in Charlotte, recognized the banking thaw and noted that they (Wood) are revisiting an already full pipeline and are currently restarting previously stalled projects.  Scott Wilkerson, with Ginkgo Residential, also echoed similar thoughts on the same panel, “The Outlook for Investment and Development in Multifamily”.

Coupled with brighter paths being lit by banks and investors, the pent up demand for affordable housing is bursting at the seams.  College graduates who have been victims of the unprecedented unemployment numbers over the past three years and were forced back to their parents’ homes are either finding jobs, creating their own jobs, or are simply over-stayed in their old rooms that have not changed since high school.  In turn, parents are gently (or not so gently) pushing these kids back out into the world.

Additionally, the greater need for affordable rental housing continues to climb among young professionals, the low-middle income level workforce, and even empty-nesters.  All of these groups have been touched by the housing crash, sub-prime market woes, and general economic impact felt all over in recent years.  As the vacancies within existing rental properties have been quickly absorbed over the past several months, demand for new units – whether small affordable efficiencies, modest-sized, smartly designed roommate plans, to larger “family” offerings – will rise quickly.  This impact will begin to be felt in late 2011 and will certainly carry into ’12 and ’13.

Axiom Architecture master planned and rezoned a 17-acre infill site with the Charlotte Housing Authority last fall straddling the Southend and Dilworth neighborhoods.  From this, a new TOD-O designation has been entitled to 10 new developable parcels which may yield up to 1000 new residential units.  The latest Charlotte Business Journal announced today that the former Maersk tract in South Park will restart with apartments targeting up to 591 new residential units.

Housing has led the way in many economic recoveries historically.  The recovery of (2012?) has yet to be fully written.  We are indeed on our way and, for now, housing seems to be on the front end of the charge.  Though many wisely remain cautious, we must also dig deep and find our bold side – and continue leading the way out of this economic slump.