Multifamily Remains Strong Despite Economic Uncertainty

Posted on August 9, 2020

A silver lining is always a good thing when it comes to investments.

We’re seeing that silver lining in our industry. Amidst economic upheaval brought on by COVID-19 – multifamily remains strong.

A multifamily real estate investment that remains strong even during times of economic uncertainty

Multifamily remains strong and has consistently beaten traditional forms of real estate investment by a long shot over the years. In times of recession, it not only comes out on top but also recovers far quicker than sectors such as industrial and office.

Typical recessions show a drastic decline in homeownership across the board. Instead, would-be buyers turn to the multifamily market, keeping the demand up in the most uncertain of times. And with building projects coming to a halt, the demand for multifamily vs. availability will actually cause rents to increase or stay steady.

It’s always possible that we will see a slight dip in occupancy in an economic downturn, but given multifamily’s strong resilience, this is expected to be short-lived and may not even materialize.

Multifamily truly is the silver lining in the real estate world. We expect that the multifamily market will not only recover but will contribute overall to getting the economy back where it was pre-COVID 19.

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