While factors such as governmental policy and homeowner age impact demand for multifamily, there are four trends that are significantly driving current demand – employment growth, homeownership, Generation Y and population growth – and they work together to affect the market in a variety of ways. Since 2000, Texas has gained more than a million jobs, while the other 49 states lost a total of 1.5 million in comparison. From 2005 – 2010, home ownership fell by 4 percent, creating more than four million renters. Larger than the Baby Boomer generation, Gen Y could increase the number of new renters in the U.S. by five million by 2030. Topping the national growth chart, Texas has welcomed 529,000 new inhabitants since 2010.
“It’s no secret that the apartment capital market has been white-hot lately. In fact, 2012 sales volume of $65.8 billion came close to the all-time high of $66.2 billion reached in 2005.”
– RedNews, April, 2013
“Despite construction costs on the rise and financing still not being up to par to pre-Great Recession times, real estate is still the soundest investment of today and tomorrow, according to commercial real estate high rollers who spoke at Pension Real Estate Association’s 2013 Spring Conference in Washington, D.C.”
– Commercial Property Executive, March 2013
At PRIME, value creation for our investors and partners is our number one goal. We seek to source and invest in income-generating multifamily properties that have been overlooked by larger or less opportunistic investors. As a result of our uniquely structured company, we have the opportunity to invest in distressed, underperforming and outdated assets, and materially improve their economics through better management, marketing and construction.