If you are looking for a great investment in 2020 with a high return on investment, the Multifamily housing and senior communities are stronger than ever! 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.
“Multifamily and Senior/Assisted Living have been two of the hottest markets for proposal activity for quite some time, not only among the Housing submarkets, but throughout all 58 submarkets,” says PSMJ’s Greg Hart.
“It is remarkable that both have seen such steady proposal growth for so long. Very few submarkets have been this consistently strong throughout the 16-year history of our survey.”
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.
What can investors expect in 2020?
A steady demand for multifamily housing is expected for developers and investors in 2020. Basically a mirror of 2019, with the same stability.
Rents will continue to rise in many cities and sub-markets, as the demand for apartment living continues to grow in most demographics and occupancy rates will remain high. Which will encourage apartment property managers to continue to raise rents in 2020.
Strongest Markets in 2020
Those markets in close proximity to growing core cities and gateway markets, such as Atlanta, Orlando, Tampa, Jacksonville, and Columbia South Carolina, may be the strongest. The demand for multi family housing will be strong, but the competition from new construction will be low. Making it a great opportunity for investors.
Stand Out in 2020
The key to a successful development is to stand out from the competitors. New construction and upgrades of existing properties will need to focus on high tech and ‘green’ construction. A key factor for continued growth will be to understand the demographics and achieving their needs.
Contact SWET Construction Group for a successful project with high returns on investment!