Why Apartment Buildings Are on the Rise

Why Apartment Buildings Are on the Rise 1

Since the last real estate collapse of 2008, many builders and developers had to declare bankruptcy.  It has taken many years to recover from the subprime mortgage crisis, but today when you look around, it appears money is as liquid or abundant as water.  Cranes are everywhere.  Multi family apartment communities are replacing strip malls.  They’re everywhere.  As I look around, I keep asking myself, “Who is going to occupy all these new units?’  After doing a bit of some research, I found baby boomers are opting for life experiences over maintaining their life long homes.  They want to travel.  I’m no baby boomer, but I can certainly appreciate their sentiment.  On the other spectrum, millennials are starting to have families and desire to have a home, but are unable to move due to their college debt.  For those able to move out, it has been extremely hard to find a home since the rise in interest rates has caused mortgage payments to increase with every home.  Most home owners refinanced a few years ago when rates were 3%+.  Today, it is difficult to find a home that is both affordable and in decent condition.  As a result, more and more people are forced to stay in apartments where rents keep trickling up year after year.  As an investor, it is a great time to own this asset class.  If you would like to learn more about how to put your IRA or dollars to work, please contact me.  I would love to share how we are creating financial freedom thru multi family properties.