An investment in multifamily real estate can help you diversify your investment holdings. This is an area of real estate that many investors have had personal experience with, so it may feel like a comfortable foray into real estate investing.

In addition to familiarity, though, there are many sound reasons to invest in multifamily real estate. Let’s take a look at the top 5 reasons.

  1. Demand for multifamily real estate should continue to rise. 

Last year set a record for multifamily demand, with annual absorption – the total number of newly built apartments that were rented during the year – of 617,500 apartments, according to CBRE. That was up 238% from 2020 levels and 97% from 2019.

Vacancy rates in the multifamily sector are at their lowest in nearly four decades: As of Q4 2021, the vacancy rate was just 4.5%, according to Costar data.

It’s no wonder that a recent Berkadia survey found that 82% of mortgage bankers and investment sales advisors expect demand for multifamily housing to rise.

Many people prefer renting over owning their home, and there are many reasons for this:

  • Home ownership is not a top priority for millennials or Gen Z, who are delaying marriage and may be carrying heavy student debt burdens.
  • Rising home prices and mortgage rates have priced many people out of the market.
  • As workers spend less time at each job, they want more flexibility to move for the best opportunities.
  1. An investment in multifamily housing can offer both income and appreciation. 

Rents offer an income stream to multifamily investors, while the property itself may appreciate in value. And rents have been rising.

According to Redfin, in January 2022, the nationwide average asking rent for an apartment was up 15.2% from January 2021. Rents rose even more in particularly in-demand metro areas, with the top 10 growing markets all seeing rent growth of 30% or more from 2019 to 2022. In fact, only two metro areas that Redfin tracks saw rents fall during January.

  1. Multifamily real estate offers a wide range of investment options.

Apartments are in demand in suburban and urban areas, small and large cities, and across regions of the U.S. Properties range from garden-style apartments that may be just a couple of stories high to skyscrapers, from multi-building communities to single standalone buildings. Multifamily properties also cater to a variety of demographics, and include various levels of amenities – you can invest in Class A, B or C multifamily, or in affordable or workforce housing specifically.

  1. Multifamily real estate tends to be inflation-resistant.

Most apartment leases are for one or two years, which means rate changes can happen frequently. The ability to adjust rental rates to match the market gives multifamily real estate tremendous inflation resistance.

  1. Governments are focused on building affordable and workforce housing.

This focus stems in large part from rising home prices, and has led to a variety of government incentives for developers of affordable and workforce housing. This type of multifamily real estate can be an investment that is both profitable and performs a social good. The right types of housing help communities thrive, reduce homelessness and increase the quality of life for residents.

Are you interested in investing in multifamily properties through crowdfunding? Sign up with Lloyd Jones to learn more about hotel investment opportunities.

An investment in multifamily real estate can help you diversify your investment holdings. This is an area of real estate that many investors have had personal experience with, so it may feel like a comfortable foray into real estate investing.

In addition to familiarity, though, there are many sound reasons to invest in multifamily real estate. Let’s take a look at the top 5 reasons.

  1. Demand for multifamily real estate should continue to rise. 

Last year set a record for multifamily demand, with annual absorption – the total number of newly built apartments that were rented during the year – of 617,500 apartments, according to CBRE. That was up 238% from 2020 levels and 97% from 2019.

Vacancy rates in the multifamily sector are at their lowest in nearly four decades: As of Q4 2021, the vacancy rate was just 4.5%, according to Costar data.

It’s no wonder that a recent Berkadia survey found that 82% of mortgage bankers and investment sales advisors expect demand for multifamily housing to rise.

Many people prefer renting over owning their home, and there are many reasons for this:

  • Home ownership is not a top priority for millennials or Gen Z, who are delaying marriage and may be carrying heavy student debt burdens.
  • Rising home prices and mortgage rates have priced many people out of the market.
  • As workers spend less time at each job, they want more flexibility to move for the best opportunities.
  1. An investment in multifamily housing can offer both income and appreciation. 

Rents offer an income stream to multifamily investors, while the property itself may appreciate in value. And rents have been rising.

According to Redfin, in January 2022, the nationwide average asking rent for an apartment was up 15.2% from January 2021. Rents rose even more in particularly in-demand metro areas, with the top 10 growing markets all seeing rent growth of 30% or more from 2019 to 2022. In fact, only two metro areas that Redfin tracks saw rents fall during January.

  1. Multifamily real estate offers a wide range of investment options.

Apartments are in demand in suburban and urban areas, small and large cities, and across regions of the U.S. Properties range from garden-style apartments that may be just a couple of stories high to skyscrapers, from multi-building communities to single standalone buildings. Multifamily properties also cater to a variety of demographics, and include various levels of amenities – you can invest in Class A, B or C multifamily, or in affordable or workforce housing specifically.

  1. Multifamily real estate tends to be inflation-resistant.

Most apartment leases are for one or two years, which means rate changes can happen frequently. The ability to adjust rental rates to match the market gives multifamily real estate tremendous inflation resistance.

  1. Governments are focused on building affordable and workforce housing.

This focus stems in large part from rising home prices, and has led to a variety of government incentives for developers of affordable and workforce housing. This type of multifamily real estate can be an investment that is both profitable and performs a social good. The right types of housing help communities thrive, reduce homelessness and increase the quality of life for residents.

Are you interested in investing in multifamily properties through crowdfunding? Sign up with Lloyd Jones to learn more about hotel investment opportunities.

VIENNA, Va. – Shelters to Shutters (S2S), a national non-profit that provides talent for the multifamily real estate industry while transitioning individuals and families from homelessness to economic self-sufficiency, today announced a $100,000 donation from Miami, Fla.-based Lloyd Jones LLC, a real estate investment, development, and management firm specializing in multifamily and senior housing.

“This investment gives us the ability to bring our proven model to the Orlando area and begin operations with a local Executive Director and City Advisory Board. We are thrilled that Lloyd Jones is paving the way to make this growth possible. We believe this will be just the start of multifamily companies in Florida partnering with us to provide employment and housing opportunities to the deserving individuals we serve,” David Williams, President and CEO, Shelters to Shutters

S2S partners with over 40 apartment management companies – such as Lloyd Jones Multifamily Management, AvalonBay Communities, Gables Residential and Freeman Webb – to place people experiencing situational homelessness in on-site, entry-level jobs and provide them with housing at the same communities where they work. Each participant is provided with career mentoring and access to support services to ensure a successful long-term transition. S2S works with a number of homeless-focused non-profits to identify suitable job applicants, changing the lives of individuals and families and providing quality, motivated employees for a rapidly growing industry in need of talent.

“We are proud to partner with Shelters to Shutters to bring this impactful program to Florida,” said Chris Finlay, Lloyd Jones CEO. “As the demand for rental housing continues to rise in many U.S. markets, so does the need for qualified candidates to work in the property management industry. We look forward to working with Shelters to Shutters to find new talent to meet this growing demand for our industry while simultaneously changing lives for the better.”

Eighty-three percent of those experiencing homelessness in the U.S. are situationally homeless due to a life-altering event such as job loss, medical or health emergency, divorce, domestic abuse or the loss of a primary income earner. The donation from Lloyd Jones will help further ensure Shelters to Shutters can serve more people who want to work and return to a life of self-sufficiency.

Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. Orlando will be the sixth market for Shelters to Shutters.

About Shelters to Shutters

Shelters to Shutters is a national 501(c)(3) organization that transitions individuals and families from homelessness to economic self-sufficiency by educating and engaging the real estate industry to provide employment and housing opportunities. Across the country, Shelters to Shutters pairs leading property management companies with individuals experiencing homelessness who are ready to work. The result is an innovative program that provides full-time employment and housing opportunities for individuals facing homelessness and a pipeline of high quality, motivated employees for the multifamily housing industry. Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. More information can be found at www.shelterstoshutters.org or by following the organization on LinkedIn, Facebook and Twitter.

About Lloyd Jones LLC

Lloyd Jones LLC, is a private-equity real estate firm that specializes in multifamily and senior housing.  With 42 years of experience in the real estate industry under the continuing direction of founder Chris Finlay, the firm acquires, improves, and operates multifamily and senior housing communities.  The firm is based in Miami, Florida. Its partners include institutional investors, family offices, and individual accredited investors. For more information, visit www.ljasl.wpengine.com or follow the firm on LinkedIn or Facebook.

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VIENNA, Va. – Shelters to Shutters (S2S), a national non-profit that provides talent for the multifamily real estate industry while transitioning individuals and families from homelessness to economic self-sufficiency, today announced a $100,000 donation from Miami, Fla.-based Lloyd Jones LLC, a real estate investment, development, and management firm specializing in multifamily and senior housing.

“This investment gives us the ability to bring our proven model to the Orlando area and begin operations with a local Executive Director and City Advisory Board. We are thrilled that Lloyd Jones is paving the way to make this growth possible. We believe this will be just the start of multifamily companies in Florida partnering with us to provide employment and housing opportunities to the deserving individuals we serve,” David Williams, President and CEO, Shelters to Shutters

S2S partners with over 40 apartment management companies – such as Lloyd Jones Multifamily Management, AvalonBay Communities, Gables Residential and Freeman Webb – to place people experiencing situational homelessness in on-site, entry-level jobs and provide them with housing at the same communities where they work. Each participant is provided with career mentoring and access to support services to ensure a successful long-term transition. S2S works with a number of homeless-focused non-profits to identify suitable job applicants, changing the lives of individuals and families and providing quality, motivated employees for a rapidly growing industry in need of talent.

“We are proud to partner with Shelters to Shutters to bring this impactful program to Florida,” said Chris Finlay, Lloyd Jones CEO. “As the demand for rental housing continues to rise in many U.S. markets, so does the need for qualified candidates to work in the property management industry. We look forward to working with Shelters to Shutters to find new talent to meet this growing demand for our industry while simultaneously changing lives for the better.”

Eighty-three percent of those experiencing homelessness in the U.S. are situationally homeless due to a life-altering event such as job loss, medical or health emergency, divorce, domestic abuse or the loss of a primary income earner. The donation from Lloyd Jones will help further ensure Shelters to Shutters can serve more people who want to work and return to a life of self-sufficiency.

Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. Orlando will be the sixth market for Shelters to Shutters.

About Shelters to Shutters

Shelters to Shutters is a national 501(c)(3) organization that transitions individuals and families from homelessness to economic self-sufficiency by educating and engaging the real estate industry to provide employment and housing opportunities. Across the country, Shelters to Shutters pairs leading property management companies with individuals experiencing homelessness who are ready to work. The result is an innovative program that provides full-time employment and housing opportunities for individuals facing homelessness and a pipeline of high quality, motivated employees for the multifamily housing industry. Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. More information can be found at www.shelterstoshutters.org or by following the organization on LinkedIn, Facebook and Twitter.

About Lloyd Jones LLC

Lloyd Jones LLC, is a private-equity real estate firm that specializes in multifamily and senior housing.  With 42 years of experience in the real estate industry under the continuing direction of founder Chris Finlay, the firm acquires, improves, and operates multifamily and senior housing communities.  The firm is based in Miami, Florida. Its partners include institutional investors, family offices, and individual accredited investors. For more information, visit www.ljasl.wpengine.com or follow the firm on LinkedIn or Facebook.

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VIENNA, Va. – Shelters to Shutters (S2S), a national non-profit that provides talent for the multifamily real estate industry while transitioning individuals and families from homelessness to economic self-sufficiency, today announced a $100,000 donation from Miami, Fla.-based Lloyd Jones LLC, a real estate investment, development, and management firm specializing in multifamily and senior housing.

“This investment gives us the ability to bring our proven model to the Orlando area and begin operations with a local Executive Director and City Advisory Board. We are thrilled that Lloyd Jones is paving the way to make this growth possible. We believe this will be just the start of multifamily companies in Florida partnering with us to provide employment and housing opportunities to the deserving individuals we serve,” David Williams, President and CEO, Shelters to Shutters

S2S partners with over 40 apartment management companies – such as Lloyd Jones Multifamily Management, AvalonBay Communities, Gables Residential and Freeman Webb – to place people experiencing situational homelessness in on-site, entry-level jobs and provide them with housing at the same communities where they work. Each participant is provided with career mentoring and access to support services to ensure a successful long-term transition. S2S works with a number of homeless-focused non-profits to identify suitable job applicants, changing the lives of individuals and families and providing quality, motivated employees for a rapidly growing industry in need of talent.

“We are proud to partner with Shelters to Shutters to bring this impactful program to Florida,” said Chris Finlay, Lloyd Jones CEO. “As the demand for rental housing continues to rise in many U.S. markets, so does the need for qualified candidates to work in the property management industry. We look forward to working with Shelters to Shutters to find new talent to meet this growing demand for our industry while simultaneously changing lives for the better.”

Eighty-three percent of those experiencing homelessness in the U.S. are situationally homeless due to a life-altering event such as job loss, medical or health emergency, divorce, domestic abuse or the loss of a primary income earner. The donation from Lloyd Jones will help further ensure Shelters to Shutters can serve more people who want to work and return to a life of self-sufficiency.

Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. Orlando will be the sixth market for Shelters to Shutters.

About Shelters to Shutters

Shelters to Shutters is a national 501(c)(3) organization that transitions individuals and families from homelessness to economic self-sufficiency by educating and engaging the real estate industry to provide employment and housing opportunities. Across the country, Shelters to Shutters pairs leading property management companies with individuals experiencing homelessness who are ready to work. The result is an innovative program that provides full-time employment and housing opportunities for individuals facing homelessness and a pipeline of high quality, motivated employees for the multifamily housing industry. Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. More information can be found at www.shelterstoshutters.org or by following the organization on LinkedIn, Facebook and Twitter.

About Lloyd Jones LLC

Lloyd Jones LLC, is a private-equity real estate firm that specializes in multifamily and senior housing.  With 42 years of experience in the real estate industry under the continuing direction of founder Chris Finlay, the firm acquires, improves, and operates multifamily and senior housing communities.  The firm is based in Miami, Florida. Its partners include institutional investors, family offices, and individual accredited investors. For more information, visit www.ljasl.wpengine.com or follow the firm on LinkedIn or Facebook.

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VIENNA, Va. – Shelters to Shutters (S2S), a national non-profit that provides talent for the multifamily real estate industry while transitioning individuals and families from homelessness to economic self-sufficiency, today announced a $100,000 donation from Miami, Fla.-based Lloyd Jones LLC, a real estate investment, development, and management firm specializing in multifamily and senior housing.

“This investment gives us the ability to bring our proven model to the Orlando area and begin operations with a local Executive Director and City Advisory Board. We are thrilled that Lloyd Jones is paving the way to make this growth possible. We believe this will be just the start of multifamily companies in Florida partnering with us to provide employment and housing opportunities to the deserving individuals we serve,” David Williams, President and CEO, Shelters to Shutters

S2S partners with over 40 apartment management companies – such as Lloyd Jones Multifamily Management, AvalonBay Communities, Gables Residential and Freeman Webb – to place people experiencing situational homelessness in on-site, entry-level jobs and provide them with housing at the same communities where they work. Each participant is provided with career mentoring and access to support services to ensure a successful long-term transition. S2S works with a number of homeless-focused non-profits to identify suitable job applicants, changing the lives of individuals and families and providing quality, motivated employees for a rapidly growing industry in need of talent.

“We are proud to partner with Shelters to Shutters to bring this impactful program to Florida,” said Chris Finlay, Lloyd Jones CEO. “As the demand for rental housing continues to rise in many U.S. markets, so does the need for qualified candidates to work in the property management industry. We look forward to working with Shelters to Shutters to find new talent to meet this growing demand for our industry while simultaneously changing lives for the better.”

Eighty-three percent of those experiencing homelessness in the U.S. are situationally homeless due to a life-altering event such as job loss, medical or health emergency, divorce, domestic abuse or the loss of a primary income earner. The donation from Lloyd Jones will help further ensure Shelters to Shutters can serve more people who want to work and return to a life of self-sufficiency.

Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. Orlando will be the sixth market for Shelters to Shutters.

About Shelters to Shutters

Shelters to Shutters is a national 501(c)(3) organization that transitions individuals and families from homelessness to economic self-sufficiency by educating and engaging the real estate industry to provide employment and housing opportunities. Across the country, Shelters to Shutters pairs leading property management companies with individuals experiencing homelessness who are ready to work. The result is an innovative program that provides full-time employment and housing opportunities for individuals facing homelessness and a pipeline of high quality, motivated employees for the multifamily housing industry. Shelters to Shutters currently operates in five major markets: Atlanta, Charlotte, Houston, Nashville and the National Capital Region. More information can be found at www.shelterstoshutters.org or by following the organization on LinkedIn, Facebook and Twitter.

About Lloyd Jones LLC

Lloyd Jones LLC, is a private-equity real estate firm that specializes in multifamily and senior housing.  With 42 years of experience in the real estate industry under the continuing direction of founder Chris Finlay, the firm acquires, improves, and operates multifamily and senior housing communities.  The firm is based in Miami, Florida. Its partners include institutional investors, family offices, and individual accredited investors. For more information, visit www.ljasl.wpengine.com or follow the firm on LinkedIn or Facebook.

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For renters, the economic uncertainty of the pandemic has meant that homeownership plans have been put on hold. According to a recent study from Yardi’s RENTCafé, due to unforeseeable nature of current events, 43% of renters report that they plan to delay homeownership for five years or longer. The survey, which ran at the end of May 2020, asked 7,000 renters about their housing plans before and after the coronavirus hit. Financial worry is cited as the main reason why 21% of the renters surveyed plan to postpone buying a home for at least five years, while nearly one-quarter of renters said they would never be able to purchase a home.

As renters look forward, they are choosing the housing options that gives them the most financial stability until they have the confidence to undertake bigger financial transactions. Homeownership comes with additional—and often unpredictable expenses—including interest, property taxes, insurance and maintenance. Apartment living, with its consistent monthly rent and one-time deposit, is more appealing to renters than home buying right now. And, in more than half (59%) of housing markets nationwide — 442 of 755 U.S. counties — renting a three-bedroom property is now more affordable than buying a median-priced home.

“We’re seeing higher renewal rates across our portfolio as tenants remained in their apartments during the lockdown,” said Chris Finlay, founder and chairman of Lloyd Jones, LLC. “Those properties that were well-positioned before the pandemic will continue to perform well, with above-average income growth and property price appreciation.”

Across demographics, while younger generations like millennials are more likely to want to own a home—even if it’s five years or more down the road—half of baby boomers said they wouldn’t purchase a home again. The less costly, more convenient apartment lifestyle may play a role. With renter households over 60 increasing considerably in the past decade, boomers seem to be getting more and more comfortable with renting.

“Tenants who move to buy a home is one of the main reason for vacancies,” said Finlay. “Considering the current market conditions, renting appears to remain the lifestyle of choice for many, including a growing market of seniors. There continues to be a tremendous demand for affordable, highly amenitized rental communities for seniors to age in place, and we believe is this an excellent investment opportunity that offers lower risks and excellent returns.”