Multifamily Investments in 2023
Several factors contribute to this phenomenon:
- Housing is a basic need, yet a severe housing shortage remains in the U.S., hence there will be steady levels of occupancy among apartments.
- This persistent rental demand ensures that multifamily real estate investments provide consistent cash flow through rental income, which can help investors weather economic downturns.
- Historically, real estate investments have been less volatile than the stock market, providing a more stable return on investment.
- Development deals remain difficult to pencil in until hard costs pull back. Starts have already meaningfully declined, making our value add business model more attractive.
- The data in Q12023 suggests a trend of normalizing rental growth.
- Multifamily real estate continues to provide tax benefits, and hedges against inflation.