Multi-Family- Looking Ahead to 2017
2016 has been a good year with interest rates and benefits for real estate investors especially when using 1031 exchanges to your investing benefits. Multi-family housing has become in demand because it is a great way to invest in real estate by having more tenants under one roof, to name one benefit. In fact, the past few years have been favorable for the multifamily market. With single family construction down the last few years, developers have turned to apartments for work. And now, investors are also catching up to the opportunities to invest in multi-family units.
But what will 2017 bring, now that 2016 is nearing an end? Will the next year remain the same, increase, or decrease as it relates to multifamily investors? Remember when construction was in demand and the costs of supplies and materials went up? How about developers rushing to finish their projects first to make it sell at a fast rate? Could these wars possibly return with multifamily? Basic economics says it is possible, supply and demand.
What is also possible, is to see rent growth due to the demand of rental units. There is an ever growing market for those who prefer to rent, especially here in Contra Costa County, California. While rent growth is projected to continue in 2017, it is not expected to be at the rate of the past few years. However, this is not a bad thing. It means we have a steady rent rate market now. There is money to be made in multifamily housing.
Here is what we know: investor interest will remain strong, the market is competitive for rental rates, and investor activity should remain in the positive for the coming year. To stay on top of profits, keep value at the core with your business endeavors. Stay focused and maintain proactive management techniques that will be essential to controlling costs, payroll, and overall success.
This Multi-Family- Looking Ahead to 2017 information is brought to you by: The Irvin Team, Your Contra Costa County Real Estate Investment Experts!