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The Growth of New Niche Markets

Less regulation and lower taxes: that’s what investors expect out of 2017, and it’s driving demand in several niche investment markets. While values are closing in on 2008 values once again, this time, there’s no bubble to burst, and investors are poised to earn big.

Millennials and Boomers are Driving Multifamily Demand

Both students and seniors are discriminating renters, and developers are tripping over themselves to secure segments of both audiences. Forecasters expect demand to remain high as the younger set postpones family and home ownership, and the older set downsizes, but stays out of retirement communities.

REITS Are Becoming More Specialized and Affordable

As developers struggle to keep up with the demands of these specialized segments, REITS are more focused on location or market. At the same time, crowdfunded or e-REITS are entering the investment game with lower fees, attracting new investors.

The Future is Urban Living

Target market segments are looking for walkability and convenience, in addition to high-end amenities such as smart apartments and well-designed communal living spaces. They’re staying in the cities, and that makes urban mixed-use developments particularly attractive to developers and investors, alike.

While values and recent elections may leave some investors wary of another reset, all signs point to continued growth in 2017 and beyond. That leaves investors with lots of options for expanding their portfolios in a sometimes-volatile, but encouraging, multifamily housing investment market.

Are you Ready?

What are you doing to prep your property to compete in this new niche market? Contact us today and we’ll get to work on a strategy designed to fit the unique needs of your property. Call us at 817-284-1411 or send an email to info@classamgmt.com.

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