Investment Property Demand Should Remain Strong
I spent the morning at the Minnesota Real Estate Journal’s 2015 Apartment Summit. The conference showcased eight separate panels of investors, researchers, lenders and multifamily property developers.
Much of what was said was relatively specific to large apartment complexes and developments.
There were several opinions that held relatively consistent among the various panel members:
- The demand for investment properties should remain strong through the end of 2015.
- Today’s tenant population covers a broad spectrum of people, ranging from milennials to empty nesters.
- Rents should see a 2-3 percent increase through the end of the year.
When I listened closely, however, I also picked up some not so subtle hints things may be starting to change.
Toward the end of the morning, managers of numerous large, upscale multifamily properties owned by Greystar, IRET and Timberland Partners shared what their 2014 tenants had named their top reasons for leaving when they moved. They were:
- Job relocation.
- Buying a house.
- Rent increase or losing a roomate.
All three said it was the first time they could recall “Buying a House” ranking that high in their exit poll in years.
That may be a sign of good things for the housing market.
It may also be among our first subtle signs of a changing rental market.
We’ll be watching.