Multifamily Traits Proceed Regardless of the COVID-19 Pandemic

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Multifamily Trends Continue Despite the COVID-19 Pandemic

Despite the havoc the pandemic wreaked in commercial real estate, the multi-family asset class continues to show resilience. according to CREXi.

"Many investors are still looking for properties with multiple units for sale in 2020 as a safe and solid investment," said CREXi. It is reported that low interest rates, limited housing supply, and population migration south and west have contributed to the rise of apartment buildings. All of this happened before the pandemic – but the pandemic helped speed the process up.

As social distancing became the norm, people looked for more space, often found in the suburbs, including greenfield apartments, according to CREXi. For example, in cities like New York City, commercial real estate transactions have plummeted.

As people move towards the suburbs, they will find fewer units on offer in those areas. CREXi reports that smaller markets with fewer than 2 million people are seeing growth of 4% or more due to cheap supply / demand.

For 2020, CREXi predicts that Austin Atlanta and Phoenix will be among the most important suburban markets.

CREXi suggests that multi-family owners should monitor several aspects of their properties to ensure continued success. This includes property maintenance, rental collections, and increased home deliveries. You mention that continued support from both local and federal governments is key to the continued success of the asset class.

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