Multi-family housing appears poised to evolve in 2016 and beyond, as consumer tastes and economic outlooks push the market in various directions. GlobeSt.com recently asked commercial experts about the property management and real estate trends on the horizon. The key takeaways:
“The more amenities the better.”
Technology and features that appeal to younger people are especially driving change and growth. With supply growing and renters stretching their budgets to get the highest value, owners and management must come to the table with attractive amenities.
Rent growth may slow
The 4% annual growth of rent cannot sustain itself forever, so how will your property stay profitable when things level out? While cash is flowing, invest in value-added features that will reduce future costs.
Biggest growth in high-end
Developers are building luxury apartments more often than ever. Millennials and other groups will gladly choose multi-family housing — if the quality of life exceeds what they can afford through ownership.
Stagnant wages for many renters
On the other end of the spectrum, renters of lower-cost housing are failing to see wage increases on pace with rent growth. Are your lower-cost assets prepared to handle a fallout if the local market pushes prices lower?
We look at these property management and real estate trends as clues to help prepare for the future. Controlling costs while making smart investments in property management tools will help multi-family units stay profitable no matter what lies ahead.
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