WHY MULTIFAMILY INVESTING?

SOME OF THE GREATEST, LONG-TERM WEALTH BUILDING OPPORTUNITIES EXIST ONLY IN COMMERCIAL REAL ESTATE INVESTMENTS.
TODAY IS A HISTORICALLY UNIQUE WINDOW FOR THIS ASSET CLASS.


With a volatile equities environment for the foreseeable future and a distressed residential real estate market, our research and experience shows that one sector will be one of the best drivers for investment success and wealth development for the next 25 years – commercial multifamily apartments. This is obvious when you consider the four fundamental changes causing this shift now.

  • THE LARGEST RENTAL GROUP

    New households aged 18 to 30 are being driven by the largest demographic wave in US history: the Millennials (Echo Boomers), the 80+ million children and grandchildren of the Baby Boomers. In addition to this demographic group’s sheer size, many millennials are disenfranchised with the concept of home ownership. 75% of them are more likely to rent than own

  • THE SECOND LARGEST RENTAL GROUP

    The second largest demographic group in US history: the Baby Boomers at 78 million strong. As this group transitions from homeownership to renting, they are likely to never own again. Additionally, the average lifespan continues to increase, thus extending this generation’s rental demands.

  • THE NATIONAL HOME OWNERSHIP RATIO

    Home ownership has rapidly declined from 69.2% in 2004 towards the mean of approximately 64% today. This homeowner displacement has driven, and will continue to drive, households out of residential owner-occupied property to renter-occupied apartments.

  • ECONOMIES OF SCALE

    Go Big or Go Home. Economies of scale typically start at a very high level, such as 100 units or more. Go Pro. Large properties have access to professional property management firms on a different scale than smaller properties.


Experts estimate that more than 5 million households have moved from ownership to renting already, and this impact will last for decades.

The net effect of the supply and demand imbalance is a strong and long-term upward trend in renter households.

“Since 2005, an average of 804,000 new rental households per year have been created compared to just 75,000 per year from 1990-2004. That’s a stunning annual increase of 1,040%, inverting the ratio of homeowner/rental household formation to 25/75 from its historic ratio of 65/35.”

– HUD and US Census Bureau


LESS RISK,
CONSISTENT RETURNS

Historically, commercial real estate has had more up years than down years and less overall volatility

INFLATION
PROTECTION

Direct real estate investments have outperformed inflation better than any other income producing asset.


 

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