Multifamily, Best Bet for Investment in 2020

Multifamily is the safest investment next year, particularly with rising fears of a recession. The asset class is more protected against downturns than any other asset class, making it a safe investment as the cycle matures.

“Multifamily is definitely more protected against economic downturns than any other type of property,” Nat Kunes, SVP of investment management at AppFolio, tells GlobeSt.com. “A shift in the economy doesn’t mean people will forgo homes. They might forgo retail experiences, which may force retailers to close up shop—literally—but people will always need homes. It’s as simple as that. Yes, the multifamily market might experiences subtle shifts, but those shifts are nothing in comparison to the impact felt by investors in other property types.”

Kunes is continually bullish on the apartment market, largely because the asset class has proven to be a strong performer during a downturn. “Multifamily is a safe bet in the real estate investment ecosystem because, historically, it’s always been an in-demand asset class,” he says. “Unlike retail property, the value of which might shift dramatically depending on larger, economic factors, multifamily is generally shielded from significant market swings. People need housing, and as a number of potential homebuyers continue to get priced out of the market, multifamily renting remains a top choice for many Americans.”