What should I invest in? Retail? Industrial? Office? Land? NOPE! none of these are as good as Multifamily.
Rising interest rates won’t hurt Multifamily investors because tenants lease for 12 months at a time.
Multifamily Investors can raise rental rates annually and most other sectors can’t! This allows Multifamily investors to keep up with rising interest rates.
Housing prices are going up making renting more attractive than buying for many people. This further helps the Multifamily market by growing the numbers of potential tenants.
The overall commercial real-estate (CRE) industry has continued to see expansion in 2016. This growth is expected to continue in 2017 due to the fact that the economy is not in a state of overproduction.
Construction activity in Arizona has been booming, particularly in the Phoenix area where requests for multi-family and home building construction permits were up by forty percent. Prices for Multifamily in Phoenix has skyrocketed while Tucson remains steady. More and more investors start looking for investment opportunities in Phoenix only to find better values in Tucson.
The market is doing so well in fact, that analysts say that the biggest cost increase this year for developers will be labor costs as a result of the shortage.
According to surveys conducted by RL Brown Housing Reports, the highest demand in the entire country for framing contractors is in Arizona. In 2016, property values rose about three percent from last year while resale prices doubled that rate.
Meanwhile, the demand for rentals continues to be strong, with the average occupancies for all Real Estate Interest Trusts (REITs) in Arizona averaging at around 94 percent last quarter. Now is the time to lock in on an investment property before prices continue to increase!
Call the Deal Maker Team for more insights into the markets in Phoenix and Tucson.