19) Is There a Housing Shortage
The all-time high demand for housing paired with the extreme shortage in the market is a major area of opportunity for multifamily assets. Currently, there is a housing deficit of approximately 3.5 million homes nationwide. Between this demand and the average rising price of houses, there is an attractive space for multifamily assets that have not yet been satisfied. The reason for this is because the housing market is slowing due to higher interest rates which creates the need for more affordable housing.
Given the extreme housing deficit, the current market demand and inflation, multifamily assets should perform exceptionally well. With almost 35% of the population residing in rental housing and only about 6% vacancy, well researched and developed or acquired multifamily properties will be an exceedingly secure investment. Taking into account that these assets are rather recession-proof and allow everyone involved to hedge against inflation, they are attractive during these unpredictable times.
For more information about this check out our previous article Investing During Extreme Inflation.
Overall, given the circumstances found in today’s market, these assets are becoming more and more sought after as the current trends continue to point in the same direction. Due to this demand, it leaves a need for housing nationwide with investors and general partners chomping at the bit for more deals. For any further information or to learn how to grow together with Albany Park Capital feel free to reach out to us here.
“Alleviating Supply Constraints in the Housing Market.” The White House, The United States Government, 30 Nov. 2021, https://www.whitehouse.gov/cea/written-materials/2021/09/01/alleviating-supply-constraints-in-the-housing-market/.