Why The Time To Invest in Multifamily Properties is Now
For real estate investors looking to expand their portfolio, there is no better time to invest in multifamily properties than now. Not only has the number of renters increased by 9 million over the past decade (the largest 10-year gain on record), but rental demand has risen across all age groups, income levels and household types as well. The reason why rental demand is still going strong can be attributed to these 3 factors:
Job Growth – One reason why rental demand is still going strong is due to tremendous job growth in Central Florida. While the correlation between job growth and household growth means more people can afford their own residences, the people who primarily benefit from job growth are generally renters. One way this can be seen is through millennials, who are moving out of their parents’ homes to establish their own households.
Demographics – The aging of the millennial generation is one key factor as to why rental demand is strong. This generation is delaying marriage, children and moving to the suburbs to buy a home until later in life – opting instead to rent. Homeownership rates are also declining for aging baby-boomers and generation x-ers who were hit the hardest during the recession.
Homeownership Down – Another reason the rental market continues to drive the housing recovery is because people are waiting to buy their first home; “Ages at first marriage and the start of childbearing have been on the rise for some time, implying delays in first-time home buying.” While available evidence suggests that the general appeal of owning a home has not completely diminished, homeownership will continue to face challenges caused by the recession.
Sources: U.S. Census Bureau, JCHS – Harvard University, CrowdStreet, FreddieMac
At 100Units.com, we have delivered unparalleled results to commercial real estate owners and investors for over 10 years. Our experienced multifamily property investment advisors have closed more than $100 million in multifamily property transactions. If you are interested in selling or acquiring an apartment building in Central Florida, contact us today and allow us to tell you exactly how we can get you the best results for your investment.