{"id":3275,"date":"2023-06-01T17:28:00","date_gmt":"2023-06-01T17:28:00","guid":{"rendered":"https:\/\/capitalsquare1.wpengine.com\/?post_type=expertise&#038;p=3275"},"modified":"2023-08-28T20:35:49","modified_gmt":"2023-08-28T20:35:49","slug":"why-multifamily","status":"publish","type":"expertise","link":"https:\/\/capitalsq.com\/expertise\/why-multifamily\/","title":{"rendered":"Why Multifamily?"},"content":{"rendered":"<p class=\"appear-on-scroll\">Out of all real estate property types, multifamily housing solutions are the most stable, recession-resistant, inflation hedging and likely to see long-term growth. Massive shortages in multifamily housing and all economic indicators point to a strong multifamily market for years ahead.<\/p>\n\n<h2  class=\"appear-on-scroll wp-block-heading\" ><span class=\"text\">Compelling Fundamentals of Multifamily Investments<\/span><\/h2>\n\n<ul  class=\"appear-on-scroll wp-block-list\" >\n<li>Housing is necessity, not discretionary, spending. Unlike retail or other sectors, housing is a stable, essential asset.<\/li>\n\n\n\n<li>Housing is one of the largest asset classes in the world. For roughly a third of households in the U.S., 30% or more of household income being spent on housing costs.<sup>1<\/sup><\/li>\n\n\n\n<li>Higher housing prices and mortgage rates have pushed even more Americans toward the rental market, which has caused both demand and rents to rise even further in recent years.<sup>2<\/sup><\/li>\n\n\n\n<li>Due to recent trends toward a &#8220;flight toward quality,&#8221; value-add opportunities provide growth potential from interior renovations and amenity enhancements.<\/li>\n\n\n\n<li>Nearly half of all U.S. apartments were built before 1980.<sup>3<\/sup><\/li>\n\n\n\n<li>Demand for higher-quality apartments spiked 13.8% after the market cool down during the pandemic.<sup>4<\/sup><\/li>\n\n\n\n<li>Due to the short lease term (compared to office, industrial or retail), apartment rents can quickly be adjusted as inflation increases. In periods of rapid inflation, such as the hyper-inflation environment in 2022, rents can rapidly be reset to the market.<\/li>\n\n\n\n<li>Available agency financing, such as from Fannie, Freddie and HUD, provides a competitive advantage for multifamily investments.<\/li>\n\n\n\n<li>In 2022, the national multifamily vacancy rate was 5.0%, well below long-term averages.<sup>5<\/sup><\/li>\n<\/ul>\n\n<p class=\"appear-on-scroll\">Even during the Great Recession in 2008, multifamily housing performed well, provided it was not over-leveraged. Compare that to the thousands of commercial real estate (CRE) assets that were lost to lenders in the same period.<\/p>\n\n<p class=\"appear-on-scroll\">Capital Square is one of the nation\u2019s leading sponsors of tax-advantaged real estate investments and an active <a href=\"\/development\/\">developer<\/a>&nbsp;and <a>manag<\/a><a href=\"\/property-management\/\">er<\/a> of multifamily communities. Our data-driven investment philosophies enable us to raise capital, buildings and expectations.<\/p>\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div  class=\"appear-on-scroll wp-block-button\" ><a class=\"wp-block-button__link wp-element-button\" href=\"\/portfolio-offerings\/\"><span class=\"label\">Explore our open multifamily investment offerings<\/span><\/a><\/div><\/div>\n\n\n<hr  class=\"appear-on-scroll wp-block-separator has-alpha-channel-opacity\" \/>\n\n<p class=\"appear-on-scroll\">[1] &#8220;American Community Survey Public Use Microdata,&#8221; U.S. Census Bureau, 2021.<\/p>\n\n<p class=\"appear-on-scroll\">[2] &#8220;Consumer Expenditures in 2021,&#8221; U.S. Bureau of Labor Statistics, Report 1101, January 2023.<\/p>\n\n<p class=\"appear-on-scroll\">[3] &#8220;NMHC tabulations of 2021 American Community Survey microdata,&#8221; U.S. Census Bureau; National Multifamily Housing Council, Updated November 2022.<\/p>\n\n<p class=\"appear-on-scroll\">[4] &#8220;America\u2019s Rental Housing 2022 report,&#8221; Harvard Joint Center for Housing Studies, January 21, 2022.<\/p>\n\n<p class=\"appear-on-scroll\">[5] &#8220;2022 Multifamily Market Outlook: Defying Gravity,&#8221; Fannie Mae, January 2022.<\/p>","protected":false},"excerpt":{"rendered":"<p>Out of all real estate property types, multifamily housing solutions are the most stable, recession-resistant, inflation hedging and likely to see long-term growth. Massive shortages in multifamily housing and all &hellip;<\/p>\n","protected":false},"author":[40],"featured_media":179728,"template":"","meta":{"featured_image_background_position":"","promoted":false,"priority":"","footnotes":""},"categories":[25],"tags":[33,37,30],"content-type":[39],"investment":[],"class_list":["post-3275","expertise","type-expertise","status-publish","has-post-thumbnail","hentry","category-investment-insights","tag-development","tag-investor-education","tag-multifamily","content-type-article","author-capital-square-team"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Multifamily? - Capital Square - Raising capital, buildings and expectations<\/title>\n<meta name=\"description\" content=\"Massive shortages in multifamily housing and all economic indicators point to a strong multifamily market for years ahead.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/capitalsq.com\/expertise\/why-multifamily\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Multifamily? 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