In the recent times, construction of multi-family households is performing surprisingly well. In the long run, housing units of the buildings having five or more housing units consist of 25% of the housing units being constructed so far. As far as the figure of 2014 is concerned, the figure of these units has summed up to 35%. Can you say why the multi-family housing has become so popular these days?
Demography and Real Estate Attitude
Before concluding the change of attitude as the prime cause, let us consider all the other possibilities. Partially, it is the demographic of the place that is responsible for this change. Young adults of the modern generation prefer living in apartments than the older adults. Numbers of young adults are on the rise.
The pattern is noticeable in the previous data. A considerable number of multi-family units are built in 1970s and in the middle of 1980s. Reagan tax laws encouraged some of the developments that took place in the second era. This development resulted in real estate investment. Data has revealed that there were more rentals, a non-risky way to a great amount of riches. However, soaring of multi-family construction is a bit surprising since rental alternatives have become more vibrant with the coming of single family houses.
In the long past, housing alternatives were very simple – there were either single family homes or rental apartments. The surge in home prices gave rise to the development of condominiums. Now, options for multi-families are not only limited to rented apartments, they can even own a condo. As far as the single families are concerned, during the time of recession, many single family house owners with distorted
In the long past, housing alternatives were very simple – there were either single family homes or rental apartments. The surge in home prices gave rise to the development of condominiums. Now, options for multi-families are not only limited to rented apartments, they can even own a condo. As far as the single families are concerned, during the time of recession, many single family house owners with distorted properties offered their house as rent to the homeless individuals. Thus, the market for single family homes became stronger than it was before.
It is advisable that the young adults weigh advantages and disadvantages of ownership. It is suggested that people moving out from their houses should opt for renting. But, it is mostly seen that young adults are interested in renting apartments. This, in a way, proves the strength of multi-family market.
Lifestyle Affecting the Realty Market
Let’s now consider the lifestyle trend. Children have a typical attitude to this trend of living standard. When a youth looks for jobs, it is seen that his tendency is to find a company located very near to his house, as near as he can even walk to the office. Youths are not even ready to commute in their own car. Mostly, they prefer the walking urban lifestyle.
The fundamental character of human nature noticed in the recent times is young adults after they get married and their kids become adults, the young parents tend to look for a dwelling. The present decade has revealed increase in the population of young adults and hence, a strong base for multi-family housing. However, the trend is expected to change in the recent future, during the era of 2020 to 2030. The market for apartment is also expected to take a turn. This trend might affect the sale of property in different places like St. James.