Chicago Multifamily Property Blog

Undoubtedly, these U.S. midterm elections are consequential, but for commercial real estate, there is really only one issue at play: the economy.

>Improvements don’t always have to be extensive and costly, like a new clubhouse or fitness center. Some of the best ways to add value to a property are simple, cost-effective improvements

“Multifamily is going to stay strong. The reason being, it now costs over $300,000 a unit to build a new stick-built apartment. Three years ago, that was the median price of a single-family home in the United States.

Housing Shortage + Young Workforce = Need for Housing Innovation

The young workforce – the Millennial workforce, the Gen Z – cannot buy housing. They have student loan debt. They don’t have the credit. They don’t have the cash savings, and they can’t afford a 7% mortgage.

Rents are going to continue to rise 6-8% and 10-12%, especially in markets like Texas and Florida and other inland markets where the workforce is going.”

Related:
Multifamily’s Prime Target? Aging Millennials
https://www.creconsult.net/market-trends/multifamilys-prime-target-aging-millennials/

One would expect that multifamily owners and developers are taking the preferences of the nation’s largest renter cohort into consideration. However, recent residential development patterns demonstrate that this is not the case.

Gross domestic product increased 0.6 percent after two quarters of decline, but key components continue to show an economic slowdown.