As promised, we are continuing to pull excerpts from the Harvard JCHS annual report. This week, I want to call attention to the looming demand crunch in the multifamily sector. It can be summed up in two words – Echo Boomers. Harsh economic conditions have impacted the second largest generation in US history, keeping them out of the housing market. But the job outlook for millennials is improving. This will push them into the renter market over the next decade:
“The number of households in their 30’s should therefore increase by 2.7 million over the next decade and provide a strong lift to the rental and starter home markets.”
We prefer steady, predictable market conditions for our multifamily investments. And while we never saw commercial multifamily approaching a bubble phase, it is good to see how the market is normalizing and allowing patient, strategic investors plenty of opportunity.
In this week’s segment of reading past the headlines, I submit this example. Did multifamily construction “hit the skids” in August? Sure. If by “hitting the skids” you mean almost 20% growth year over year….
The Multifamily Partner Program is infested with entrepreneurs. We wouldn’t have it any other way. I love this article on what makes a great entrepreneur. I have seen many of these common traits in our partners.
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