For residents, multifamily housing offers the advantages of affordable housing options, shared amenities, flexibility, convenience, and the opportunity to establish community.
- Affordability: Multifamily housing often offers more affordable options than single-family homes. The shared land costs, infrastructure, and amenities among multiple residents reduces individual housing expenses while providing a clean and safe place to live.
- Amenities: Many multifamily housing developments offer a range of amenities and facilities, such as fitness centers, swimming pools, playgrounds, and communal spaces. These amenities enhance the quality of life for residents and contribute to a more convenient and enjoyable living experience. These desired amenities can drive up the cost of a single-family home, making their availability at multifamily housing attractive and affordable.
In a 2023 study conducted by The Center for Generational Kinetics & Real Page, 63% of U.S. renters are renting for reasons other than not being able to afford to buy.* The study found that 66% of multifamily renters prefer the financial freedom of renting, the flexibility for remote work, and the opportunity to try new locations. Additional benefits of multifamily housing, outside of cost, can include:
- Location Advantages: Multifamily housing developments are often strategically located in urban or suburban areas close to employment opportunities, transportation hubs, schools, and other essential services, offering residents convenience and accessibility.
- Low Maintenance: Multifamily housing typically involves professional property management, which ensures efficient maintenance, and upkeep of the premises, providing residents with peace of mind and a hassle-free living experience.
- Community: Multifamily housing fosters a sense of community by bringing together diverse groups of people within a shared living space. Residents have opportunities to interact, build relationships, and participate in community activities.
Benefits of Multifamily Housing for Communities
The rise of multifamily housing has significant implications for communities, including:
- Efficient Land Use: With the growing population and urbanization, land scarcity has become a pressing issue for many cities. Multifamily housing optimizes land use by accommodating more residents per square foot of land compared to single-family homes.
- Sustainable Urban Development: Concentrating housing units in multifamily developments promotes sustainable urban development by minimizing environmental impact, reducing urban sprawl, and encouraging the use of shared resources such as public transportation.
- Economic Growth: Multifamily housing developments contribute to the economic growth of communities by creating jobs in construction, property management, maintenance, and other related sectors. They also generate property tax revenue for local governments, supporting public services and infrastructure development.
What Is Driving Multifamily Real Estate Investment
Investing in multifamily real estate has a well-established track record as a durable and enduring investment option.
As the demand for housing continues to evolve, multifamily housing stands out as a versatile and impactful solution. We believe that demand for multifamily housing will increased given its growing attractiveness to both Baby Boomers looking to downsize, younger generations looking for flexibility, and families or individuals looking for affordable housing near employment opportunities.
The growing need for and increasing popularity of multifamily real estate continues to pique the interest of real estate investors interested in capitalizing on this trend.
Learn more:
Dallas-Fort Worth’s Multifamily Real Estate Provides Attractive Investment Potential
Sources
* The Center For Generational Kinetics & Real Page Survey Of U.S Multifamily Renters In May-June 2023. Accessed 25 February 2024 https://www.realpage.com/news/realpage-unveils-new-multifamily-rental-trends/
