Capitaliza

Multifamily vs. Single Family Homes

By: Alejandro Reyes, Capitaliza Corp. Cofounder

Advantages of investing in multifamily properties in the USA.

 

The multifamily property market continues to grow and this is due to several factors. One of the main ones is the immense demographic change that the country has experienced since the Great Financial Crisis. Today this has been evident, in particular, with the millennial generation. Most young people prefer, or is forced to be tenants instead of buying a property, which benefits multifamily properties and therefore, to their investors.

However, contrary to what many believe, the Baby Boomers’ generation (55 years and older) is also going back to the lease. According to National Multifamily Housing Council and the National Apartment Association 30 per cent of tenants, in 2017 were 55 years or older.

After reviewing the current and recent state of the multifamily market, it is essential to know the main benefits of investing in a multifamily property:

Lower risk than a higher cost of single-family housing in every way.

Higher Cash Flow: Strong income growth supports the growth of the prices.

High Demand: The increase in demand is related to the increase in the cost of housing, demographic changes and consumer preferences.

Easy Management: It is easier to manage multiple units when they are under one roof.

Taking all this into account, the multifamily property market has positioned itself as an safe and solid investment, being very attractive to investors who want to shelter their capital and, in addition, get income fixed monthly.

Scroll to Top

INVESTOR LOGIN