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Investing in Apartments? YES!!!!

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Inventory shortages are weighing down just about every housing market, with supply on all sides—renter- and owner-occupied—on a months-long downtrend. A new multifamily report now estimates that by 2030, some 4 million new apartments alone will be needed to keep pace with demand.

“Apartment rentals are on the rise, and this trend is expected to continue at least through 2030, which means we’ll need millions of new apartments in the U.S. to meet the increased demand,” said Cindy Clare, chair of the National Apartment Association (NAA), in a statement on the report, released recently by the NAA and the National Multifamily Housing Council (NMHC).

Meeting demand will require a minimum of 325,000 new apartments, defined as buildings with five or more rental units, built each year—a lofty endeavor, considering only 244,000 apartments were constructed between 2012 and 2016, according to the report.The primary catalysts behind the need are the as-ever delay in home-buying and the formation of new renter households as a result of aging and immigration. One million new renter households, on average, were formed each year over the last five.

“Renting is not just for the younger generations anymore,” said Dr. Norm Miller, principal at Hoyt Advisory Services, which collaborated with the NAA and the NMHC on the report. “Increasingly, baby boomers and other empty nesters are trading single-family houses for the convenience of rental apartments; in fact, more than half of the net increases in renter households over the past decade came from the 45-plus demographic.”

Immigrant households, in addition, will have a deeply transformative effect on both the renter- and owner-occupied housing markets.“Immigration affects rents and home prices far more than it affects the labor market,” said Alex Nowrasteh, immigration policy analyst at the Center for Global Liberty and Prosperity at the Cato Institute, at the 2017 REALTORS® Legislative Meetings & Trade Expo in May. Nowrasteh pointed to increases in home values and rents that parallel population growth, much of it spurred by immigrants.

The report finds that demand, though widespread, will be most felt in sought-after markets in the South and West, including Arizona, Georgia and Nevada, and in markets on the East Coast, such as in New York and Virginia.

“The western U.S. as well as states such as Texas, Florida and North Carolina are expected to have the greatest need for new apartment housing through 2030, although all states will need more apartment housing moving forward,” Clare said. “The need is for all types of apartments and at all price points”—affordable stock included.

So, if you ask me if investing in apartments could be a good idea, the answer will be: YES!!!! Right now there are apartments complex for sale listed and off market ready for qualified investors, please call me for more information; by the way, I can lead you on your loan process if you need it.

Luis M. Portugal
Real Estate Professional, Realtor
US: (915)892-1694
MEX: 001-915-892-1694
Triadda Real Estate

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About The Author
Luis M. Portugal

Luis is an accomplished professional known for his tireless work ethic and personable approach, he prides himself on his commitment to customizing and assertively executing the best possible transactions on his clients best interests, either residential or commercial. A Northern Mexico native, Luis grew up in a family focused on real estate and hospitality service, which is how he learned the value in taking care of people and serving his clients. Confident, focused, and persistent, Luis is now a seasoned El Paso with finely-tuned negotiating skills and an impressive roster of clients and friends that he curated as a former local and foreign business owner and manager. Luis's extensive service experience has instilled in him the ability to stay focused on his clients at every moment. Always engaged and energetic, Luis offers his knowledge and experience of the sale and rental market to make the entire real estate transaction memorable and fulfilling from the start of the search to the last details of moving in. Luis is passionate about connecting with individuals, and forging relationships that last over time. As a trusted real estate resource, he will patiently explore multiple listings with his clients and explain each step of the process in advance to ensure a smooth and successful journey in selling or buying a new home or commercial property. CLIENTES INTERNACIONALES Luis es un profesional consumado, conocido por su ética de trabajo incansable y enfoque agradable, se enorgullece de su compromiso con la personalización y ejecución asertiva de las operaciones, siempre pensando en el mejor interés de sus clientes, ya sea residencial o comercial. La compra y venta de bienes raíces por parte de inversionistas internacionales, requiere de cierta información y conocimiento de las leyes, procedimientos e impuestos de Estados Unidos, por esta razón es importante el asesoramiento y representación de un agente de bienes raíces profesional y con experiencia, tal es el caso de Luis que ha venido estudiando las mejores formas de eficientar el retorno de la inversión en propiedades comerciales y residenciales. Un nativo del norte de México, Luis creció en una familia centrada en bienes raíces y servicio de hospitalidad, que es cómo aprendió el valor en el cuidado de las personas y servir a sus clientes. Confianza, centrado, y persistente, Luis es ahora un experto en bienes raíces en El Paso, TX con capacidad de negociación finamente ajustados y una impresionante lista de clientes y amigos que ha venido cosechando como ex propietario de negocios locales y extranjeros. La extensa experiencia de Luis en el servicio ha inculcado en él la capacidad de permanecer enfocado en sus clientes en todo momento. Siempre ocupado y lleno de energía, Luis ofrece su conocimiento y experiencia en la venta y alquiler en el mercado de bienes raíces y hacer que toda la transacción sea memorable y satisfactoria, desde el inicio de la búsqueda de la propiedad hasta en los últimos detalles de la mudanza. Luis es un apasionado en la conexión con las personas, y el establecimiento de relaciones que perduran en el tiempo. Como profesional de bienes raíces y de confianza, pacientemente explorar múltiples listados con sus clientes y explicando cada paso del proceso por adelantado para asegurar un viaje sin problemas y con éxito en la venta o compra de una nueva casa o propiedad comercial.