3 Reasons Why 2020 is the Year to Invest in Multifamily Properties

Posted on August 5, 2020

Apartment BuildingReal estate is often a market in which high-net worth individuals consider investing. It is by no means an easy venture, but wise investments can provide an opportunity for a solid foundation of wealth. Why is 2020 the year to invest in multifamily housing? The short answer: high-value, low-risk. Let’s dive in.

1. The American Dream is Shifting
The American lifestyle is changing. Now, more than ever, people are making flexibility, rather than commitment, a priority. We now see a larger market of “renters-by-choice.” A 2019 report by Housingwire showed 32% of respondents don’t consider buying a home part of the American dream and 20% don’t plan to buy a home at all. Millennials are facing challenges such as student loan debt and homeownership is an expensive undertaking of which they are not ready to commit. Renting is a flexible option that allows for job portability and convenience.

2. High Demand meets Favorable Lending Conditions
The increasing population of “renters-by-choice” ultimately increases the demand for multifamily properties. A strong economy combined with sound fiscal policy have led to favorable lending conditions when acquiring multifamily properties. Fannie Mae and Freddie Mac financial backing also offers investors a potential liquidity buffer that other types of commercial property investments do not have access to.

3. High-Value, Low-Risk
High occupancy and low vacancy rates provide solid opportunities for multifamily investments. The multifamily sector is gaining attention from investors looking for a high-value, low-risk opportunity. The growing demand and favorable lending opportunities makes 2020 the year to consider multifamily property investment.


Realty Mogul

NREI Online




More CGI+ News & Press

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

CGI+, the investment and development firm founded by Gidi Cohen, has filed updated plans for a major apartment complex in central Hollywood. The project would be located at 1830 North Cahuenga Boulevard, at the corner of Cahuenga and Franklin Avenue, a prime Hollywood location a few blocks north of the Hollywood Walk of Fame.

read more
Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

The last year has not been easy for the head of a commercial real estate company. Inflation and the Fed’s response, as well as trends that emerged from the pandemic, have clearly had an impact on the industry across all of the sectors. Besides the effect of, say, ongoing remote work on the beleaguered office asset class or the slowing pace of rent increases in multifamily, these executives have also had to navigate an increasingly difficult capital markets environment. I have some bad news for this group: the near-term future doesn’t look any easier. Enter our selection of Best Bosses this year. This year’s picks were made at least in part based on their resiliency and ability to position their companies for future growth, whenever that might occur. We are confident these strengths will see them through what could be choppy waters ahead.

read more