Multifamily Investment Can Still Thrive In 2020
The current threat of COVID-19 has probably already thrown a wrench into the plans of multifamily owners, brokers, and investors at the moment, not to mention have them worried about the future of investment in the business.
However, multifamily investment can still thrive in 2020. A few factors of this being:
Supply and demand are still sustainable
Multifamily supply is expected to further improve and demand for it is still just as high as ever.
Additionally, research and market commentary by Fannie Mae forecasts that supply and demand for multifamily units will be short lived and that the expected supply moderation of 2020 up to the next few years paired with continuing demographic trends and solid job growth should ensure that rental demand will remain stronger for this year and beyond that.
Cross-border investment is still an option
Cross-border investment still remains strong as investors from the Middle East and Canada still have interest in the U.S multifamily market.
Foreign investors are still attracted the U.S multifamily market and it shows as far as last year when cross-border investment totaled at least in the billions in 2019 according to Real Capital Analytics or RCA’s data.
Investment in multifamily is still a safe bet
At the end of the day, investing in multifamily is still the safest and best bet to make in 2020.
There is still so much room for multifamily to be one of your best investments to make. Many factors aside from the recent pandemic can still affect the profitability and the market of your multifamily such as the upcoming November elections that may affect the impact of how well your property will do in this year or the years to come.
Don’t let this pandemic make you think all hope is lost. Multifamily is still a considerable option when it comes to making profits despite recent and difficult times in the market.