Why Now is the Ideal Time to Invest in Multifamily

Jeff Burns

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LOS ANGELES—It’s the end of the cycle and there are fears that supply may be catching up with demand in some markets. But Burns, managing director at Walker & Dunlop, insists that now is the ideal time to invest in the multifamily asset class—especially if you are also seeking financing. “10-year Treasury rates are low which has made for a busy first half of the year,” he tells GlobeSt. “The market is experiencing steady rent growth and an active acquisition environment which makes deals easy to finance. Bottom line, dropping rates and rising rents make for a great combo.”

His view extends to all segments of apartments, not just the current favorite of value-add and workforce housing. Here is the case he makes for these categories.

Value-Add Dwellings

The multifamily niche experiencing significant rental growth is the value-added rental market.

Value-added dwellings are more suburban, garden-style units dating back to the 2000-2005 era. The owners are basically coming in and investing $5,000-$25,000 per unit and successfully repositioning the asset, Burns says.