Why Multifamily Units are Worth Investing in Today

When the economy is good, it’s hard to resist the value of a good investment. When the economy is bad, you have to be even more cautious when making long-term decisions about your future. But when it comes to your financial plan, there’s never been a better time to buy into the ongoing growth of the multifamily industry. The increase in the number of affordable rental units being built in the U.S. and abroad is driving the demand for affordable housing. 

However, the supply of affordable rental housing remains lagging behind demand. That’s why many investors are looking to the multifamily market to continue driving sustainable, long-term growth. Here, experienced real estate investor Raphael Toledano shares some reasons why you should consider creating a property fund to invest in multifamily properties today.



There’s plenty of room for growth in this segment


After a period of decline in 2016, the rental market is once again gaining momentum. The supply of affordable rental units is increasing, but so too is demand. This is likely to continue. As more investors, including Raphael Toledano, come to realize the long-term growth potential of the multifamily market, the number of properties being purchased will increase. This will increase supply but will also increase demand. As demand for rental properties continues to increase, landlords will have even more competition. At the same time, as the supply of affordable rental units increases, the rent that tenants are paying will decrease, further encouraging long-term growth.
 

The fundamentals of the multifamily market are favorable


Multifamily market fundamentals are favorable. The number of affordable rental units is increasing and is driven by demand from investors and the rental market. The supply of affordable rental units is relatively stable and is being driven by increases in the number of tenants. The following are some key factors shared by Raphael Toledano that are favorable for the industry as a whole:

Strong rental demand is driving demand for rental properties. With investors once again taking an interest, the supply of rental properties is increasing. This is positive as it drives down inventory and allows tenants more time to find a rental property they love.

Strong economic growth is driving demand for goods and services. The more people that can afford to live in a community, the more goods and services can be offered for the same amount of money. In the case of rental properties, the demand for these units is linked to economic growth. As more people are drawn to the area to work or live, businesses will be able to expand and draw on a larger pool of customers.

Strong employment is also favorable for the multifamily market. As more people are drawn to the area to work, there will be more demand for places to live. And as demand for rental properties increases, more landlords will be able to rent them out, decreasing the number of available units in the inventory.

As the founder and president of and Brookhill Properties, Raphael Toledano owns more than 20 multi-family units in the East Village and Chelsea.


Conclusion


Of all the segments of the market, the multifamily sector is experiencing the most growth. This growth is likely to continue, with the largest gains expected in the United States and abroad. As such, it makes sense that investors should look to the sector for sustainable long-term growth. With an increasing number of investors choosing to create a property fund, the supply of affordable rental units will continue to increase. This will allow for more competition among rental properties, thus lowering the rent that tenants are paying. And with demand for rental properties increasing, landlords will have even more competition for available units.

Thus, if you’re looking for long-term, sustainable growth in a market segment that’s gaining popularity, look no further. According to Raphael Toledano, the multifamily sector is one of the most profitable and rewarding investment opportunities available today.


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