There’s a secret right now across America amongst the wealthy. One of the best performing investments for the past decade is multifamily real estate.
After a decade of broad-based growth, renter households are increasingly likely to have higher incomes, be older, and have children. The market has responded to this shift in demand with an expanded supply of high end apartments and single-family homes, but with little new housing affordable to low- and moderate-income renters.
National vacancy rates in the first quarter 2019 were 7.0 percent for rental housing and 1.4 percent for homeowner housing. The rental vacancy rate of 7.0 percent was virtually unchanged from the rate in the first quarter 2018, but 0.4 percentage points higher than the rate in the fourth quarter 2018 (6.6 percent).
Multifamily continues to be the growth sector for Orlando investors and developers. Positive demographics and accelerated job growth have been prompting extended demand across asset classes and boosting investment activity. Nearly $3.1 billion in multifamily assets sold in the metro last year.
Housing affordability is a common concern throughout the housing industry. For a good portion of American households— especially more moderate-income families—housing costs are taking a larger portion of the paycheck. Finding affordable housing options has been a growing challenge.
The Orlando region is No. 1 in the nation for job growth for the fourth consecutive year. According to the Bureau of Labor Statistics, the Orlando-Kissimmee-Sanford metropolitan statistical area (MSA) continued its trajectory as the fastest growing job market in the country for 2018.