Written by WHY MULTI-FAMILY? WHY NOW?
We are experiencing one of the largest rental markets in our lifetime for many reasons. These reasons result in a significant shift away from home ownership and toward a strong demand for rentals. The recent history of foreclosures, unemployment, and stringent lending guidelines has made many Americans reluctant to purchase a home and seek “The American Dream”. The current Millennium Generation has different ideals of that dream and are seeking a more mobile lifestyle with less emphasis on home ownership and more on freedom of movement. Additionally, the economy has significantly hindered and reduced the supply of new housing. Securing construction financing continues to be challenging as ever and as a result, the pipeline for new construction is expected to lag for years to come while the U.S. population continues to grow putting further demand for Multifamily housing.
All of these factors contribute to decreasing/Level supply and increasing demand for apartments, but none as important as the arrival of the Echo-Boomers to the market. The Echo-Boomers are the children of the Baby Boomers and are the largest generation of young people since the 60’s to come of age. This next dominant generation of over 80 million Americans (almost 30% of the U.S. population) will affect our society like never before. The Echo-Boomers are just starting to graduate from college and are about to enter their prime rental years. Citadel Real Estate Group and its investment partners are poised to take advantage of these economic and demographic factors by acquiring premier multi-family properties with stable cash flow and long term appreciation.