Multi-family housing and apartment living is on the rise, especially in Florida and Georgia. More and more Millennials are choosing to rent. As prices of single family homes rise, it is putting it out of reach for many. While many Millennials still believe in the American Dream, they like the convenience and carefree, easy living of apartments.
A big role in the rise in apartment living is Millennials, willing to live in a smaller apartment to have great amenities and walkable communities. For instance, families can walk their kids to school, enjoy all the amenities, pool, parks, dog walking areas, and shopping, all within a close vicinity. The renter doesn’t have to worry about doing yard work, painting, repairs, taxes, and if the drain gets clogged he simply calls the property manager and it’s fixed before they even get home.
Baby Boomers also play a big role, moving from a single family house to an urban community where they can live, work and play, enjoy an easier lifestyle with great amenities.
According to RIS Media Content Solutions Construction of Multi-Family Housing are Predicted to Rise
Net job growth is expected to be 2.9 million per year, compared to a long term average of 1.2 million. Demand for real estate, particularly apartments, will remain strong. Low unemployment rates should lead to healthy wage growth, although shortages of skilled workers may surface.
Apartments – Apartment vacancy rates are forecast to rise marginally from 4.6 percent in 2014 to 4.7 percent in 2015, 5.0 percent in 2016 and 5.3 percent in 2017. Survey respondents expect rental rates to rise by 3.5 percent in 2015, 3.0 percent in 2016 and 2.7 percent in 2017. NCREIF total annual returns for the apartment sector are projected to be 9.0 percent in 2015, 8.3 percent in 2016 and 8.0 percent in 2017.
–Hotel – Hotel occupancy rates are forecast to rise from 64.4 percent in 2014 to 65.2 percent in 2015, and to 65.6 percent in 2016 and 2017. RevPAR rates are expected to rise 7.0 percent in 2015, 5.0 percent in 2016 and 4.0 percent in 2017.
Multi-Family housing in the Southeastern United States, Florida and Georgia, have become very consistent and powerful investments opportunities. As a leader in the industry, SWET Construction Group uses the latest technology, focuses on what consumers are looking for and the latest trends to deliver quality solutions to your projects. Our portfolio consists of construction of multi-family housing, assisted living facilities, condominiums, hospitality, commercial and renovations.