- Slow Wage Growth Means More Renters – Slow wage growth over the past decade contributing to a high number of potential renters, an extreme lack of new supply, and limited alternative options means strong and sustained demand for workforce housing apartments is expected to continue in 2019 (CBRE: “Here’s where multifamily investors should be putting their money in 2019.” December 5, 2018)
- 50% of Multifamily Investments Have Been in Workforce Housing – According to this report, workforce housing has brought in nearly $375 billion in investment over the last five years, more than 51% of the total for all multifamily asset classes. (CBRE: “Here’s where multifamily investors should be putting their money in 2019.” December 5, 2018)
- Affordable Multifamily Housing Is Shrinking Every Year – The multifamily industry removes more than 100,000 units per year due to obsolescence, and these are predominantly workforce and affordable housing units. The redevelopment of older housing units is tremendously valuable to the multifamily sector, providing better-quality and updated units for renters. The physical improvement to the older multifamily housing stock has also made it more attractive for investors. (CBRE: “Here’s where multifamily investors should be putting their money in 2019.” December 5, 2018)
- Strong Market Conditions for Workforce Multifamily throughout the US – nearly all areas in the U.S. are benefiting from workforce housing’s “strong” market conditions, with Orlando and Las Vegas leading the way with 7% workforce housing rent growth in the last year.
- Summary – The balance of the market forces points to continued strength in workforce housing, justifying the strong investment appeal. Investment in this segment is also very good for the housing market by helping to preserve much-needed accommodation for lower income renters. Value-add investment helps to preserve workforce housing inventory directly by improving the physical quality of the asset through renovation. (CBRE: “Here’s where multifamily investors should be putting their money in 2019.” December 5, 2018)
Investor Relations Manager
Dave is in charge of Investor Relations for Bakerson. He was a professional speaker, trainer and best-selling author who specialized in networking, sales and marketing. Dave was an award winning retail business owner and is the author of three books. He is the proud father of two great kids and married to his wonderful Lisa. When not working, Dave loves golf, movies, photography and any kind of travel!