Apartment Investments Forcast To Do Well In The Coming Years.

By sonoran • December 12th, 2008

Commercial Property News reports, in an article titled Investors Lured to Apartment Buildings, that, "…over the long term, apartments could become an appealing investment as new apartment development becomes scarcer."

In recent weeks the commercial lending market just blew up.  There is little if any money out the for big projects.  Apartment development will be down for the coming years and it usually takes a while for projects to wind up before coming on the market. 

Most of this relates to larger apartment communities but the benefits will be felt by owners of small multifamily properties as well.  Less stock means means less competition all around for tenant.

The article also notes:

"Meanwhile, immigration into the United States continues to be strong, and many Echo Boomers, or those born between 1977 and 1994, are entering the apartment rental market"

A growing demand with out a rapidly increasing supply is good for owners.

Though the market is weak and rentals are flat at this point in the Phoenix market, a good stock of apartment on the market provide investors with properties at low prices.

"Apartments are likely to be worth dramatically more in 2014 than they are in 2009.", notes the article.

Even without the prospect of equity growth properties in the market can be purchased with cash flow so appreciation will be an additional benefit.

Comments(0) Investing in multifamily, Multifamily Market

Comments are closed.

 

« Trials and Tribulations of Property Management. | Home | December Greater Phoenix Small Multifamily Sales Update »