In the aftermath of the 2008 recession and its impact on the housing market, a significant rebound has been underway for the past couple years for both single-family housing and multi-family housing, which is highlighting their appeal as good investments. In fact, rapidly increasing popularity of these kinds of properties have generated significant competition and steadily rising construction to meet the demands of the marketplace. Throughout 2014 and 2015, both types of housing units experienced steady increases in sales, affirming their status as good investments, which can be used to round out portfolios for prudent investors.
Single-Family Homes as Good Investments
When unemployment figures soared during the recession, there was a big trend among members of the millennial generation to stay at home, while the economy was tough and jobs were somewhat limited. But now with more opportunities available for college students, millennials are again breaking away from parents to establish their own households, and they are turning to single-family homes in droves. As more job opportunities present themselves to college graduates, even more of them will seize the opportunity and begin having families in their own single-family units, and this will continue to drive the market upward, making them good investments.
Multi-Family Units as Good Investments
These kinds of units remain as good investments because they represent an economy of scale, i.e. more units being available in one structure tends to save money on operational and other costs. With cost per unit being lower, income per unit is correspondingly higher, and operational expenses like maintenance, utilities, and landscaping can be spread out over several units. With foreign capital moving into multi-family investment, and much more general investment activity taking place in this area, the construction of new multi-family units and the sale of existing units are on pace to top pre-recession highs.
With a significant period of data to bear it out, there is no doubt that the housing market recovery is well underway, and that single-family units and multi-family units are leading the way. As they were prior to the recent recession, these kinds of dwellings are once again very attractive options as good investments.