Is This Your Situation: Checking out the Multi-Family Market?

In nearly every major metropolitan area, the need for multi-family housing is outpacing the construction of new, multi-family complexes. A large number of builders are shifting their focus from single-family homes and townhomes to multi-family properties and apartment buildings. This shift has been so drastic that the rate of increase in multi-family housing production is more than double that of traditional single-family home construction.
 
This trend is more obvious in some markets than in others. In 2009, the demand for multi-family housing, like condos, was nearly nonexistent in Florida, but today, almost every vacant property has been filled. It is interesting to note that the types of people who have been buying up the condos in Florida are mostly retirees and snowbirds. The baby boomer generation is reaching retirement age and as a result, many of them are looking to downsize their homes for one of two reasons. 

The first reason is that a smaller property requires minimal upkeep. Living in a multi-family housing project takes a lot of the stress of maintenance and repairs away from the property owner. The second reason is that smaller properties tend to be cheaper, and downsizing can be an easy way to decrease your regular monthly expenditures. The savings are evident in several areas, including your insurance costs, electric and gas bills, maintenance costs, and of course, mortgage payments.
 
Living in a multi-family property comes with all the upsides of owning your own property without the upkeep that a traditional single-family home requires. It is easy to see why a retiree would want to own the property that they live in - real estate is typically viewed as a stable investment and owning your own home can help to regulate your housing costs. It is also possible that due to the lower costs associated with multi-family housing, you will be able to afford a much nicer place than you would have otherwise. 

Many of the more upscale apartment buildings being designed today have hotel-style lobbies and common areas, including modern decor and plenty of space to sit and relax. These properties are typically made of steel instead of wood and are frequently found in mid to high-rise buildings.
 
For all of these reasons and more, multi-family housing is also popular with members of the millennial generation. The lower costs and minimal upkeep appeals to millennials who are just starting out in their careers. Millennials might also choose multi-family housing rather than a traditional home because they are not yet ready to settle down in the suburbs. Many multi-family complexes are located in the heart of the action, which is where most millennials like to spend their time.

For help navigating this hot, new market, give me a call today! (508) 878-2727

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