Predictions for The Changing Multifamily Market in the Year Ahead
If the multifamily industry had a motto, it might be “the only constant is change.” This year there are some changes ahead that industry players should heed, according to a new piece in Forbes online. From rental changes to emerging tech, the real estate pros who are dialed in with what is likely to shift this year will be ahead of the game. BAM looked at the expert predictions of factors like...
Changing occupancy and rental rates: The article noted that although some metro markets are seeing rental growth, overall rent growth is slowing. The author cites occupancy rates and points out that supply is catching up with demand in many areas. Furthermore, in many markets renters have stayed put in their current digs longer than customary – and an urge to move is striking many tenants. He notes that property managers will have to be tenacious about both attracting and retaining tenants in this climate, suggesting focused marketing strategies as well as modern amenities for tech-savvy consumers.
Affordable housing & population shifts: The author notes that in the quest for affordable housing, the very type of programs are changing. Many areas are offering housing vouchers instead of traditional public housing. Market demographics are also changing, as baby boomers opt for renting over owning which is moving one non-traditional group into urban environments; meanwhile the millennial generation is coming of age to begin raising families and looking at a more suburban lifestyle. The article suggests that property managers should factor different demographics into their property offerings.
What's hot this year: The article looks at the best investment bets this year. Markets that offer job opportunity and which are drawing new residents are heating up for multifamily investors. Similarly, one area that shows potential is senior housing. According to their data, senior housing will present a lot of opportunity for real estate investors. Forbes says that the exploding number of seniors in the next few decades backs up the need for increased senior housing, which creates a real chance to find a good deal in what will be a necessary market.
Cutting edge tech: As we wrote about previously, tech is red hot already. The Forbes article points out that tech which can put renters in direct contact for repair needs or help busy property managers with a home tour is emerging across the industry. Forbes also predicts that voice tech specifically will become a hot feature, with renters able to pay rent or make requests via their voice (as we noted in our article, with tech similar to Amazon's Alexa).
While you're consulting your crystal ball this year, take the Forbes recommendations into account. Real estate professionals, investors, and property managers who can target the right market, and pay attention to demographic shifts, changing rental trends, and emerging tech will be poised to succeed in the year ahead.