Small apartments are hot right now. Don’t believe me? Check out Freddie Mac‘s multifamily demand forecast:
“Under three economic scenarios, slow growth, no growth, and accelerated growth, we find the multifamily market to remain solid and health through at least 2015.”
What is this being driven by? This is being driven by two factors. First, coming out of the Great Recession, there is lots of rental demand, because less people are qualified to own homes.
Second, a huge gap between the demand for multifamily units and supply was created during the recession when there no new construction going on because there was no credit being let for apartment construction. That gap is going to continue through 2015.
I am telling you guys right now, whether you want to wholesale deals to help go find source deals to meet the demand of buyers, or you want to acquire these properties yourself and ride the wave of market appreciation, that’s why apartments are so hot right now.
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