Investing in multifamily real estate is a great decision for a lot of different reasons. Not only are apartment communities easier to manage, but they have higher appreciation rates and carry a much lower risk than many other types of investment property. That being said, the multifamily market is changing at a rapid pace and it’s important to have a thorough understanding of how those changes could impact your role as an investor if you want to stay relevant in the multifamily real estate game. Here are a few things you’ll want to consider before you make your next investment.
The cloud has taken over, with approximately 7 billion devices currently connected according to the data taken from IoT Analytics. This means that it’s more imperative now than ever before that multifamily real estate has the infrastructure that can support the continuously growing demand for access to information provided through a plethora of devices. Tenants are looking for homes that can offer a guarantee that they won’t be left in the dark ages as their internet tries to connect them or their telephone drops their calls.
In a similar vein, the tenants in the modern multifamily real estate market are looking for spaces that offer smart technology options that will make their lives simpler. This might mean keyless entry options, smart plugs, smart lights, leak sensors, voice control devices and more. Smart technology options might also be a means of allowing landlords/management companies and tenants to complete transactions (such as rental payments) without ever having to step foot out of their own front doors.
A big perk in many multifamily communities of old was access to on-site parking (particularly in urban areas where this can be much harder to find). New trends in ride-share options such as Uber and Lyft, however, have more and more Americans ditching their vehicles in favor of saving on gas, insurance and lease payments to pay others to drive for them. This has led to the need for on-site parking lessening to such a degree that many multifamily owners are re-thinking how best to utilize the additional space. Many other Americans are choosing electric vehicles over gas-powered ones, creating a need for access to vehicle outlets where they can charge up.
Work from Home Options
The surge in smart technology has also contributed greatly to more and more Americans having the option to work from home. This has created a growing need for on-site professional work spaces. In some instances this has resulted in landlords re-organizing floor plans so that in-unit office space becomes a priority. In other cases, it could mean providing a separate building that offers shared space that can be used by tenants.
Over the past few years there has been a lot of talk centered around the rise in both baby boomers and millennials flooding the multifamily real estate market. What has been less talked about is the insurgence in immigrants choosing to rent. Hoyt Advisory Services predicts that by 2024, immigration will, for the first time in history, surpass the growth of the internal population. Household sizes among immigrant families are typically upwards of four people, meaning that investors and landlords will need to begin to take a closer look at whether or not their properties are attractive to this burgeoning demographic.
With more and more focus on the ecological imprint we are leaving behind, growing concerns over the health and well-being of our planet have caused an expanding interest in green alternatives. This means that more and more tenants are looking for housing options that are making the best use of recycled materials, investing in appliances that are certified “green” and taking other actions to help lessen their negative impact on the environment.
Focus on Health & Wellness
Along with the growing concern for the health of the planet comes the equally important focus being put upon the health and well-being of the self. Americans are waking up and changing their bad habits, with more and more interest being drummed up in the areas of fitness, clean eating, and self-care. Multifamily properties are responding to this need by offering tenants greater access to on-site gyms, swimming pools, outdoor walking trails, community garden spaces and other amenities that support a healthier lifestyle.
Are You Searching for a Multifamily Investment Property in Hattiesburg of the Surrounding Areas?
The multifamily real estate market remains a great place to invest and there’s no time like the present. The experts at SVN | Southgate Realty, LLC have been diligently working to keep up with all of the industry trends in an effort to find you the best investment opportunities on the market! Call one of our team members today and let us help you find your next investment property!