The commercial realty industry has seen a fair share of ups and downs in recent years, especially where housing is concerned. Multifamily housing has always been a great investment, but this market has suffered from the economic troubles the past decade has brought. It seems that things are on the upswing for multifamily housing, and market specialists believe this is a trend that is likely to continue. For those interested in investing in commercial, multifamily housing, this may be the perfect time to speak to reputable commercial brokerage services about doing so.
Commercial Multifamily Housing Investments
Historically speaking, investment in multifamily housing has always been a fairly safe and lucrative consideration. Generally speaking, there are always people who need a place to live and either cannot afford home ownership or prefer not to own. While apartments and rental condos have always been a favorite for investors, the market has seen its ups and downs as condo ownership has increased as well.
As the economy has recovered and the housing market along with it, multifamily housing has seen those vast fluctuations as well. When foreclosures increase, the demand for rentals increases as well, and vice-versa. Currently, the multifamily market is in a unique place though. Even though there is recovery occurring in many areas, and more homes being purchased as a result, the demand for rentals continues to rise.
Are Millennials A Threat to Multifamily Housing Investments?
A large portion of home sales in recent years are to young professionals in the Millennials age group, leaving some investors wondering if this is spelling the end of what has been a lucrative period for multifamily housing. Experienced commercial brokerage services that have seen these ups and downs happen many times before disagree. Experts seem to agree that while home sales to Millennials is increasing, it is not doing the same in other buyer groups, with many other populations choosing still to rent. There are a number of reasons for this - fluctuating economy, previous home ownership experiences, and a growing realization that rental can be more convenient for some of them. The opinion still remains, commercial realty experts are continuing to see growth in multifamily housing in many markets, and expect this trend to remain.
The Future Picture for Multifamily Housing Investors
The key to success in commercial multifamily housing investment today, according to experienced brokerages following these trends, is longevity. Those who understand the idea that sticking with an investment for a longer period is what will eventually net the most profit, are the ones who will succeed in this market. Fluctuations in the economy and housing in general may mean that from year to year there are changes in the demand for multifamily housing, but overall, the demand still continues to climb. Plenty of investors are already accepting this idea and continuing to build these properties, too. Condominium sales are lower than they have been in a while, but multifamily rentals are still increasing, as are the number of new buildings going up in urban and suburban areas to support that demand. The key is sticking with an investment through the ups and downs in order to come out on top.
With this in mind, investors interested in multifamily housing should discuss their local market with experienced and reputable commercial brokerage services that can advise on local trends. Investment in the multifamily end of commercial realty can definitely be a wise choice for the right individuals, especially if they are willing to stay invested for the long haul!