If you have been sitting on the decision to invest in multi-family real estate, you may be spurred into action when you hear the latest trends in property prices. According to a report published by Wells Fargo Securities, due to unforeseen growth in the U.S. economy this quarter, property prices are rising at a substantial rate. For example, just from this time last year the property price index has risen by 8.5 percent and is 23 percent higher than its peak before the recession.
Prices have increased significantly in apartment buildings and continue to rise at a rapid pace. In fact, since just May 2017, there has been a steady growth of 11.7 percent in pricing. Some of the reasons behind this price increase can be attributed to the hurdles many buyers have to go through to own their own home as well as a lack of available homes for purchase. Also, with many first-time buyers entering the market, the concern of affordability is a key driver in their decision to rent an apartment instead of owning a home.
The uptick in multi-housing real estate pricing does not seem to be slowing – and numbers are expected to continue to grow as we make our way through this busy buying season. The longer investors wait to take advantage of this opportunity, the more it might cost in the end.