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Investors may be overlooking the profitability of the affordable housing segment of multifamily assets. Affordable housing has recently become a popular investment class, but there is still a misunderstanding about the stability of the sector. Affordable housing has an attractive risk-return profile and is better positioned to perform through a recession than class-A apartments.

“A lot of people think this sector is riskier because of a lower income credit profiles or because there is more paperwork and regulatory work—and no doubt you need an experienced operator because there is more work to be done—but we think that it is particularly attractive for a few reasons,” Jonathan Needell, president and chief investment officer of KIMC, tells GlobeSt.com.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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