Those looking for a great investment in 2019 may want to think about the Multifamily housing and apartment industry. The above average rent growth combined with low vacancy rates will make healthy returns. While there has been some growth in upscale rentals, the supply for the median income workforce has not kept up with the demand. This has been the case for both new buildings and renovations of existing housing.
“The multifamily industry removes more than 100,000 units per year due to obsolescence, and these are predominantly workforce and affordable housing units,” according to a new CBRE report cited by HousingWire. “The redevelopment of older housing units is tremendously valuable to the multifamily sector, providing better-quality and updated units for renters. The physical improvement to the older multifamily housing stock has also made it more attractive for investors.”
While this segment of multifamily housing in the Southeastern portion of the United States will see significant growth, Orlando, Florida will be out in front of the pack. The workforce housing rent growth in the city beautiful was 7 percent last year. With business moving to the area and the expansions in the hospitality industry, more people be making this town their home. Most of which will require rental units due to financial means.
“The balance of the market forces points to continued strength in workforce housing, justifying the strong investment appeal. Investment in this segment is also very good for the housing market by helping to preserve much-needed accommodation for lower income renters,” said Brian McAuliffe, CBRE’s president of Institutional Properties. “Value-add investment, in particular, helps to preserve workforce housing inventory directly by improving the physical quality of the asset through renovation.”
When you decide to invest in the multifamily housing industry, it is important to partner with a construction group who will deliver.
SWET Construction Group has a successful track record of developing premium independent and branded multifamily housing. From renovations of existing properties to new development, we offer a blend of development services to enhance the value and maximize your return for your project.
Contact SWET Construction Group for your next project in Southeastern U.S.