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.
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.
