As prices continue to climb within the single family housing market, many investors are looking at multifamily housing with renewed interest. Multifamily housing has several advantages, including more efficient management due to the presence of a centralized management office. It is usually faster and easier to acquire and renovate a given block of apartments than it is to acquire a comparable amount of single family housing. Flipping single-family homes can be risky, while multifamily housing tends to offer more control and less pressure.
- Multifamily housing is often far more efficient to manage, since the centralized location of management for multiple units tends to reduce costs in this area.
- It is often cheaper and easier to acquire a building full of apartments than to acquire a comparable number of single-family homes.
- Multifamily apartments often have lower risk and higher return on investment than single family housing.
“High rents and the need for yields have created even more competition for single family homes. This has depleted inventory and hurt affordability.”