The evidence is everywhere, in our own small microcosm of Huntington in Long Island, apartment buildings are going up – I’m sure you’re seeing some of this where you are.
According to a new Harvard Join Center for Housing Studies, 37% of all households are renters, the highest number since the 1960’s.
Demand for apartments
- 25 Million millennials have yet to move out of mom and dads, creating another future push in demand.
- Boomers who are just starting to enter the rental pool – when they do, that’s another 12,000,000 units that will be required.
What does this mean to you as an investor?
In the 3rd quarter of 2015 annual returns grew from 9.5% historically to 12%. Before you rush out and buy a building, a word of caution: it’s time to be smart, and take strategic action.
The multifamily market is on fire, and steady demand will continue to push values. It is more important to get right deal at the right price than ever.