Three Reasons Why Multifamily Homes are Gaining Momentum

The past few years have proved to be a tumultuous ride for the real estate market. The COVID-19 pandemic kicked off an unprecedented housing boom, leaving the market staggering to keep up with inventory according to the demand. The latter was significant as it played a huge part in both the residential purchase and residential income properties, including multifamily homes. Multifamily homes are properties that have more than one unit, such as duplexes, triplexes, and apartment buildings. In 2022, North America was the highest-producing country for multifamily housing, and there has been a forecast for a rise in multifamily new developments. We will explore a few reasons why multifamily construction is on the rise.

Multiple factors can lead to a need for more housing in an area, regardless of where the area is located (i.e. urban, rural, etc.). Some of the most common factors include a change in demographics, affordability, and overall lifestyle preference. The post pandemic era has enhanced the way individuals wish to experience how they live, in most cases increasing a need for flexibility in their living arrangements.

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Demographics Are Important

Multifamily living has proven to be valuable for a range of demographics, particularly individuals who are preparing themselves to purchase a home for the first time, and individuals who are starting in life whether a new couple, a student, or even roommates looking to maximize their housing budget. Multifamily homes can provide an alternative. Another group of people who are often forgotten about in the housing market includes retirees. Many of them may have become empty nesters and focused on downsizing. The 55+ housing community, valued at $565 billion, is projected to increase significantly in the next 8 years. 

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Shared Amenities Help Increase Affordability

When venturing out for independent living for the first time, whether it is purchasing your first home or renting your first apartment, there is typically an analysis of sorts that must take place. For example: if an individual values being near entertainment like shopping, parks or even being near life’s necessities like the market for groceries, there is the need to determine the proximity to any places of interest. One must also calculate the costs associated with these things and weigh them into their housing budget as a whole. One particular cost that is typically the largest is housing and lawn maintenance. A shared community means sharing those costs as well.

One of the benefits that multifamily living has pushed to the forefront is living with or within some of the things people value most, including having a fitness center, pool, and even laundry facilities on site. Also, depending on where the community is located, it's possible to combine “locale” as an amenity because places for entertainment and shopping may be within walking proximity. Multifamily housing often offers amenities that can make living arrangements much easier and more convenient, including more affordable. 

Even further, multifamily housing with shared amenities affords another quality that can be valuable - a shared sense of community.

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It's All About The Lifestyle

Multifamily homes in urban areas come with a set of perks that numerous people are finding value in. Multifamily homes in these areas are much more prevalent because they provide a prime location for many lifestyle necessities that individuals value most. 

Additionally, it's common for new construction multifamily homes to be outfitted with more modern security features including keyless entry, pre-installed security systems, and gated parking garages.

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Multifamily is on a rise in value

The popularity of multifamily homes shares a common ground in demographics, affordability, and lifestyle preferences. The varying reasons that contribute to a positive and advantageous experience in living in a multifamily are a part of the growing factors why developers are finding benefits in expanding their portfolios with multifamily.

NREMG Can Help with Development and Property Management

The multifamily segment of the market creates more opportunities for buyers and renters alike. Investors who are interested in buying a multifamily stand to benefit from properties that have been properly developed and are thriving. Renters stand to benefit from properties that are well maintained and offer a full experience including inclusive living, which contributes to optimizing costs and a sense of community.

National Real Estate Management Group understands the value in all of it. We are a group of investors and real estate professionals who specialize in connecting real estate opportunities with investors who are looking to expand the real estate business, maximize their profits, and provide a high-value product.

NREMG not only helps position investors for obtaining high-value multifamily properties, but we also help them keep them in top-tier operations by providing them with state-of-the-art property management services that have proved beneficial through increased client care and satisfaction, which is a direct factor in profit. We focus on operations, market analysis, property maintenance, and management while providing investors peace of mind in knowing their investment is the best hands in the industry.

We can do the same for you. Schedule a call with our team and learn how we can maximize your real estate investments