Multifamily investing has long been a popular strategy for landlords looking to diversify their portfolios. With the rental market continuing to expand and demand for rental housing increasing, it’s an attractive option for many investors. But what does the future of multifamily investing look like? What can landlords expect from the multifamily market in 2023? Here’s what you need to know.
Demand and Supply Balance
The most important factor when it comes to multifamily investing is the balance between supply and demand. As of right now, there is still a strong demand for rental housing, with more people choosing to rent rather than own a home. This trend is expected to continue in 2023, as more millennials enter the rental market and older generations opt to downsize or move into rental units. The good news is that this means there will be plenty of renters available—but so will competition from other landlords who are also vying for tenants.
Another factor that landlords should keep an eye on when considering multifamily investments is rent prices. Rents have been steadily increasing over the past few years, but this trend may not continue in 2023. In November and December of 2022, delinquency rates on multifamily loans have consistently increased. To maximize revenue within multifamily buildings, investors can look to offer flexible stays in a number of apartments. With Staykeepers, you can increase an apartment’s revenue by up to 80%.
Finally, macroeconomic factors must also be taken into account when evaluating potential multifamily investments. Inflation rates, GDP growth, unemployment rates, and other economic indicators can all play a role in how successful your investment will be in 2023—so make sure you take them into consideration before making any decisions.
Interest rates are one of the major factors in the reduction of successfully refinanced mature loans within multifamily.
Overall, there are plenty of opportunities for landlords looking to invest in multifamily properties over the next year. Demand remains strong while supply lags behind—providing investors with a great opportunity to maximize returns on their investments if they’re willing to do their research and take advantage of current trends. With careful planning and due diligence, landlords can set themselves up for success when investing in multifamily properties in 2023!
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