Three Reasons For Investing in Multifamily

By Christopher Levarek

When starting out investing in real estate, it benefits the investor to choose a model and focus at perfecting that model. Most will either choose to target Single Family Homes while others look to Multifamily for a variety of reasons.

Rather than list the pros and cons of each model in this post, we would like to highlight three reasons for investing in multifamily today as presented in a BiggerPockets podcast with guest Paul Moore from Wellings Capital.

Reason number 1:

Senior Citizens. “The smallest but fastest growing group of people renting now are baby boomers.” says Paul Moore. CBSNews does not disagree with him as this article America’s fastest-growing group of renters: Senior Citizens by Rachel Layne, states, “Renters older than 60 jumped 43 percent in the last decade alone.” Additionally, statistics indicate that once an individual from the baby boomer generation chooses to rent they never go back to the alternative, ie. owner occupied living.

Reason number 2:

Millennials. This group of growing renters are not as interested in purchasing residential homes and look to multifamily or apartment housing to meet their needs. In search of flexibility, mobility and due to increasing amounts of college debt these individuals are more inclined to rent then purchase a house.

Reason number 3:

Immigration. The United States is known for attracting people from all over the world and offering opportunity to immigrants from many nations. Typically, these individuals will choose to rent versus buy a home leading to an increased need for multifamily rental opportunities for this group.

In summary, these three reasons are valid arguments to examine the multifamily investment space for opportunities as the growth is most definitely there with no slowing in sight. Additionally, we highly recommend reading, “The Perfect Investment” by Paul Moore to understand the opportunities with investing in multifamily. Invest smart!