Experts recommend that investors increase allocations in core multifamily housing. This headline is making waves across real estate publications nationwide.
It’s no secret that real estate is a cycle with ebbs and flows, ups and downs. As we get further into this current cycle, the pattern is showing an increased popularity in multifamily investments. One reason for this is the strength and resiliency shown by multifamily properties in any market, especially in a downturn when other investment vehicles suffer the worst.
One of our favorite publications sat down with Chris Macke, a principal at a real estate investment advisory firm. “First, decreasing multifamily construction activity in select areas, rising mortgage rates and home prices, and reduced benefits of homeownership create an increasingly favorable supply-demand environment going forward. Second, multifamily is a good late-cycle property sector having generally outperformed during downturns and importantly, during the early stages of subsequent recoveries.”
At CGI, we are ahead of this trend, with increasing multifamily allocations this year, including two new opportunities “La Brea” and “Fedora”. To learn more about these opportunities click here: CHECK OUT THESE OPPORTUNITIES
Many investors thought that the influx of new construction in 2015 would cause the multifamily market to soften as a result of the new supply. CGI, however, continued course and we have since seen the market overcome previous expectations. Multifamily has been and will continue to be a strong performer for investment allocations. Smart investors will start doing their research now and partner with the right firm to leverage the most.
In the next 12 to 18 months, experts now say that there will be increasing opportunities in the multifamily sector.