As millennials begin to reach the age of their first home buying experience, the future success/failure of the multifamily space depends on one thing: Do they even want to buy a home?
Good news!
It’s a common belief among millennials that renting is significantly cheaper than owning a home. And this belief is increasing… “a record 82% of renters say renting is more affordable compared to last years 67%.” – Freddie Mac
This leads to a wonderful consequence. Demand for rental units across the country is continuing to soar. Builders are struggling to keep up with this demand. As long as you can stay tactful in your building strategy while construction costs slowly rise; it’s a wonderful time to be investing in multifamily.
According to CNBC,
- Apartment demand in Q2 2019 spiked 11% compared to last year.
- Rents are up an average of 3% nationally (up to $1390 per month)
“Rental demand is currently highest in the nation’s largest cities, with Dallas/Fort Worth, Chicago, Houston, New York City and Washington, D.C., leading.”