Investment Property Appeal Strengthens
According to recent statistics (check out this site to know more on those statistics), investment property and total multi-family sales (rentals, duplexes, tri and four-plexes) increased nearly eighty percent within the 2nd quarter of ’11 and within the same period of 2010—a statistic that demonstrates the United States’ shift from owning a home rather than renting. It can be assumed that the increase in apartment and rental living has increased due to the amount of home owners that have lost and are currently losing a home through foreclosure or short sale. The upsurge of demand has caused a decrease in vacancy rates and an up-tick in rental prices.
Although inferior to the mid-2007 peak, quarter two in 2011 saw a robust $15 billion in sales from investment property bringing the yearly total to 24.5 billion. Mulit-units and apartment buildings rank as the most appealing real estate purchase investments (investors are pulling capital out of the stock market and putting their money in a tangible asset which doesn’t fluctuate as drastically). Investment property developers have already promised new projects due to the high demand. As new developers are actively building apartment buildings, a crane hire is much needed to complete these projects.
Coastal real estate markets have accounted for the large majority of sales volume in multi-family units. Top market included:
Los Angeles: 2.3. Billion
Bay Area: 2.1 Billion
Washington D.C. 2.6 Billion
Investors with high capital “in hand” have been the most vigorous investment property purchasers.