8 Reasons to Invest in Multifamily
Today I want to quickly list 8 reasons why multifamily is the investment of the future.
#1 - the labor market. The labor market is creating more lower-wage positions. There are more part-time workers in the workforce, and there are more self-employed workers who are making less than what they used to.
#2 - the participation in the workforce is at 63% now, which is the lowest it's been in 38 years. Obviously, the fewer people working full-time, the more people there are renting.
#3 - there's a lot more debt. The 2016 student loan debt average was $37,000. Of those with a student loan, debt 12% were delinquent on the loan. Of those people, they had $16,000 in annual credit card debt, $27,000 in auto loan debt. So, all together they have $80, 000 in total debt coming out of college. With the average salary starting off at only $50,000, after you pay all your expenses and service the debt, there's really not much left to ever pay down the principal.
#4 - 32% of 18- to 34-year-olds are living at home. And for the first time in 130 years are more likely to be living at home than with a spouse or partner. And of course, when they finally leave home, they're not going to just go buy a home, they're going to end up renting.
#5 - the average age to marry nowadays is 27 for a woman 29 for a man. And for most they probably don't have kids, so renting is more likely for this group. If you also consider the fact that the divorce rate is between 42-45%, that adds to the number of people renting at least initially after the divorce.
#6 - homeownership is down to 63%, which means renting is up.
#7 - There are 46 million people over the age of 65, which is 12 times more than it was in the year 1900. Typically seniors want less hassle on the homeownership so you should expect to see a major boom in senior housing over the next 15 to 20 years.
and finally #8 - the quality of rental housing is just way up. Think about the amenities you see nowadays, car washes, dog runs, basketball, volleyball courts, big pools, clubhouses, etc.
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