As you can probably guess, multifamily real estate is my favorite investment vehicle, but I wanted to spend some time talking about why I also believe that it is one of the best businesses in the world!
Let me explain…
Acquiring multifamily real estate is not just an investment in a property—it’s an investment in a fundamental human need, meaning it has what I like to think of as “built-in demand”.
As we all know, housing is a basic necessity, and we as humans will always need a place to live. Unlike other asset classes that fluctuate with consumer trends or technology shifts, multifamily real estate benefits from this built-in demand for somewhere to live.
Unlike office buildings or retail spaces, apartments don’t have to compete for tenants in the same way. People may change shopping habits, work remotely, or spend less on travel—but they still need housing.
What’s crucial to recognize is that today’s U.S. housing affordability crisis is only making this built-in demand more apparent.
As the entire country probably knows, the U.S. housing market is undergoing a growing affordability crisis, driven by rising home prices, unemployment, and income stagnation. For millions of Americans, homeownership is no longer a realistic option, which is reshaping rental demand and making multifamily housing a critical piece of the affordability puzzle.
In many U.S. metropolitan areas, the median home price now requires an annual income over $150,000—double the national median income of $75,000. U.S. home prices have surged by 230% since 1995, while median incomes have only grown by 120% in the same period. Simply put, home prices have far outpaced income growth, and millions of people are unable to afford a home—even if they want to buy. This means they must rent, further strengthening demand for well-located, well-managed multifamily housing.
While the affordability crisis is a challenge (for myself included, as well as many of my friends and family), it’s also an opportunity. With homeownership increasingly out of reach for many, the demand for rental housing continues to grow. This presents a unique opportunity for investors to not only build wealth through multifamily real estate investing but also contribute to easing the housing shortage by providing safe, affordable, and well-managed housing options for those who need it most.
This is why I love multifamily real estate investing. I truly believe that it is one of the best business models in the world and is a great opportunity to create both financial success and meaningful impact. The demand for rental housing will only continue to grow, and the role of responsible investors in this space has never been more important.
If you’re interested in learning more about how multifamily real estate can fit into your portfolio, I’d love to discuss. Schedule a call with me here!
As always, if you know someone who might find this valuable, feel free to share it with them!
