Rents are going up… Prices are going up..
This news hasn’t reached a lot of people yet, but apartments seem to be the next big thing. The reason, as most pronosticators in real estate will tell you. is that the Millennials have not decided yet to get into the “home buying” mode.
Instead they are opting to rent. They like areas such as Sacramento’s Midtown area which has an eclectic atmosphere that not only includes apartments but also restaurants, coffee shops, bars, night clubs and of course a close proximity to lots of jobs in downtown. Don’t forget we have the new sports arena currently under construction there.
In addition since the great recession around the area I live, Folsom, Ca, they are just now starting work at catching up in the demand for new housing. As you can surmise, affordable rental housing is a hot item pretty much across the board.
I know in our Property Management business, we rented out a single family home in Empire Ranch within a day or so of it hitting the market. Another example to share with you is we recently represented a small investor that purchased a Duplex through us. He immediately raised the rent on one side from $800 to a $1,000 and the other from $1075 to $1175.
Below, to make my point, are some recent articles from various sources. By the way.. click on the picture above here to catch some photos of some nice projects in Sacramento.
Region’s biggest apartment complex changes hands for reported $62M – Sacramento Business Journal
Investors Keep Piling into Aparments –National Real Estate Investor
Sacramento region leads nation in apartment occupancy increase – Sacramento Business Journal
You’ll notice in some of those articles that these investors intend to fix these up and “drive rents”. If you’re a small investors, say Duplexes, Four-Plexes or small Apartment complexes, please take note because those dynamics work for you too.
Let me know what you think and in the mean time…?
Make it a Great Day…!
Ed Favinger, Broker CRS, GRI, SFR, CDPE firstname.lastname@example.org 916-203-1260