5 major trends in collective real estate | Entertainment News

Another driving force behind the rise in multi-family investments is rental demand that is still high relative to supply. The housing shortage has pushed the construction of new housing – multi-family and others –in overdrive, with new units being built in suburban and urban areas at a record pace. That said, new construction is unlikely to dampen return on investment for investors in the multi-family market.

Analysts believe continued demand for rental units should keep pace with new supply, meaning there will be enough demand for investors to maintain healthy occupancy in multi-family properties for the foreseeable future. The consistently high demand in multi-family markets is the result of a complex confluence of factors including demographic shifts, low homeownership rates, zoning regulations, and the under-construction of non-luxury multi-family properties in cities and towns. working areas.

With skyrocketing demand and limited housing options, renters are unlikely to see significant relief in the near future. But in the years to come, forward-looking multi-family investors may be able to earn attractive returns while increasing the supply of market-priced housing, thereby lowering costs for tenants in an otherwise inflated rental market. .

This story originally appeared on EquityMultiple and was produced and distributed in partnership with Stacker Studio.