As active multifamily investors constantly monitoring the best times for both entry and exit, we are buoyed by a recent report in National Real Estate Investor that predicts 2018 will be another strong year for multifamily housing and apartment purchases by investors.
“There is still a hunger for yield by investors,” Jim Costello, senior vice president for Real Capital Analytics (RCA), was quoted in the report. “I don’t see 2018 as being that much different” from 2017, which saw a surge in apartment purchases as 2017 came to a close. While not a record-breaking year as 2016 had been, last year still saw a total dollar volume of apartment sales that exceeded the historical average.
Most reports we are seeing, as a matter of fact, indicate this is going to be a good year for investing in multifamily, particularly existing properties.
The boom in new-builds of upscale apartments is softening, giving way to demand for older-but-renovated Class B properties, Karlin Conklin writes in Multi-Housing News.
That’s an area of expertise for our team at Moneil Investment Group, LLC, and we have a wealth of information to share through our Multifamily Syndication Academy and specialized training. Click here to learn more about the academy.
Experts continue to forecast a healthy renter population, although the rate of increase is cooling, as reported in the recently released “America’s Rental Housing 2017” from the Joint Center for Housing Studies of Harvard University.
From the JCHS report’s executive summary:
…the housing crisis no doubt generated renewed appreciation for the advantages of renting that will help sustain demand in the years ahead. Indeed, even as the homeownership rate stabilizes, renters are still likely to account for slightly more than a third of household growth. According to Joint Center projections, the number of renter households will increase by nearly 500,000 annually over the ten years from 2015 to 2025—a still robust pace by historical standards.”
JCHS characterizes the outlook this way:
…even if the homeownership rate stabilizes near current levels, the number of renter households is likely to continue to increase at a healthy clip, driving up the need for additional supply. And given that a broader array of households has turned to renting, this also means a growing need for a range of rental housing options.”