As the U.S. economy continues its longest ever expansion, the labor market is making history as well with the lowest unemployment rate in 50 years. That’s great news for investors looking for compelling return opportunities in the commercial real estate market. But because pricing for all types of CRE products has also increased, it’s vital to look for areas of opportunity, such as workforce multifamily rentals in secondary markets with strong fundamentals.
Today, demand for workforce multifamily housing is far outpacing supply. To keep pace, apartment developers would need to build an average of 328,000 units per year through 2030 — a figure that has only been met once in the past 30 years.