Multi-family housing has been on the rise recently, and is forecasted to remain this way over the years to come. According to Forbes.com it has comprised up to 35% of all housing units constructed in the recent year. The growing popularity of multi-family housing is mainly attributed to the increase in the number of millennials (age 20-34) who are moving out of their parent’s houses and going urban where they rent their own property.
Industrial and commercial growth over the past years has inspired more and more millennials to pursue higher educational degrees in diverse fields, promising a pool of lucrative careers. They separate from their families and move to the urban apartments, which give them far more convenient access to their workplaces. This accessibility eliminates their need for a car and most of them are now taking advantage of the cheaper cost of public transit.
Another reason that they find multi-family housing apartments more appealing than buying their own home is that they get to take advantage of the shared amenities such as pools, fitness centers and community rooms. Apartments offer them almost the same comfort as owning a single house but at a much lesser cost.
An Anchorage commercial real estate expert theorizes that millennials have had learned about the challenges associated with owning real estate through their own parent’s experiences. The recession, bank foreclosure, and all other problems accompanying the failures on securing house financing has lead many of them to think that owning a home isn’t as important as it once seemed.
Millennials also tend to delay marriage and family life longer than previous generations. They are more career-focused and are enjoying the many perks of bachelorhood such as fewer responsibilities, less mouths to feed, less worries, and living more comfortably. Without a family, they don’t have problems living in a smaller space which is enough to house their basic needs.
This big generational shift offers promising business opportunities for real estate players. If you’re thinking about growing your income through Alaskan real estate, it would be a wise move to consider multi-family investments in Anchorage, AK. You can find the best deals in Anchorage through firms like Graham Real Estate. With their intensive industry experience, they can provide you focused expert service to help jumpstart your multi-family venture.
(Source: Multi-Family Real Estate Forecast: 2014-2020, Forbes.com)