Why invest in apartments over a longer term?
Demographic Trends Support Apartment Investment:
- Echo boomers now beginning to enter the rental market substantially increasing the prime renter pool of households 18 to 35 years in age.
- Immigration is an additional source of ongoing rental demand in most major markets.
- Growth of lower paying jobs creates additional demand for apartments, particularly those geared to working families with moderate incomes.
- Lifestyle decisions such as delaying marriage, divorce, rise of single parents, etc. continue to increase the pool of renters.
Historic Return Series – Historic track record of stable and reliable cash flow. Unleveraged apartments have generated total returns in excess of 9% over the past 25 years according to NCREIF.