Question
The trends in multifamily property investment in the U.S. include a projected demand of 240,000 units in 2020 due to slower economic growth. Millennials continue to contribute to multifamily demand despite moving into homeownership at a modest pace. There has been a decrease in investment in areas like New York Metro and Greater Los Angeles due to factors like new rent control regulations. However, there has been an increase in the San Francisco Bay Area. Investment in the suburbs and smaller metros with a population under 2 million is considered a good bet.
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Because of slower economic growth in 2022 and 2023, apartment demand in the U.S. is projected at 240,000 units in 2020. Millennials continue to move into homeownership at a modest pace due to affordability issues, but multifamily demand remains sufficient enough. New York Metro's 9.2% year-over-year (YoY) drop in multifamily investment was partly caused by the implementation of new rent control regulations. Greater Los Angeles had a 9.8% drop in investment YoY, but the San Francisco Bay Area had a 7.4% increase. Buying or building in the suburbs remains the best bet based on market performance and investment returns. Investors and developers should consider smaller metros – under 2 million population.
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