So far, prices for Multifamily Apartment Buildings have only increased slightly from a year ago, unlike single family homes prices, which have increased by over 30% from a year ago in the Phoenix metro area, as detailed in a previous post.
The demand has increased, partially because of the many former homeowners that have short saled or lost their homes in foreclosure in past few years are now living in apartments buildings.
But also the poor economy seems to have caused a major shift in home ownership, many young people are opting to rent apartments longer, rather than buy, partly because of down payment requirements or ability to get a loan, but also there are a larger percentage of single people in this age group.
The Millennials or Echo Boomers, a group 80 million strong will have a huge impact on housing for years to come and present a huge rental opportunity for landlords.
This is a group that values higher education, perhaps even over home ownership, they don’t necessarily feel the need to own a home right now, but instead may prefer to have a newer modern apartment they rent, with amenities like a gym, instead of a place they own and would have to spend their money and weekends fixing up.
They have never had a phone of their own that they didn’t carry with them, they have grown up with technology, which is important to keep in mind if you are an Apartment Building owner interested in targeting this massive generation for their housing needs.
Marketing your rental property to this generation will need to be done online with video, highlighting features like close proximity to retail and entertainment centers, and public transportation. Pointing out the energy-efficient systems you in the properties and how much the tenants will save on their utility bill.
This group is young and their needs and desires are no doubt ever changing, but now and in the foreseeable future owning Multifamily Investment property, to provide housing for this huge generation of young people may be worth considering.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.