Demand for multifamily housing remains high, ensuring solid returns for investors. According to the Wall Street Journal, pent-up demand for multifamily rentals is substantial, and is driven by the younger generations reaching adulthood and seeking to build a life apart from their parents. The WJS states that more than 50% of 18-24 year-olds still live with their parents and are seeking affordable, flexible ways to fly the nest and establish independence.
Enter multifamily rentals, which are easier to access and offer more flexibility for those who are leaving home for the first time. Demand looks to remain high, too, as mortgage prices continue to remain well above the rate of growth in wages.
Not to be outdone by the Millennial cohort, rentcafe.com notes that Baby Boomers are renting at a faster pace, too. Renter households over age 60 are up by 43%, outpacing owner households and growing faster than other age groups.
Investing in multifamily housing is a solid choice, as economic factors affecting two of the largest age groups ensures demand will remain strong into the future.