Multifamily properties are one of the most common living accommodations chosen by both tenants and property owners alike. In real estate terms, multifamily housing has a lot of benefits to offer and can be a lucrative investment for investors. For the commonfolk, multifamily homes provide affordable housing with additional amenities to meet their needs.
Therefore, we can surmise that multifamily real estate has a direct impact on local economies. In this blog, we will be exploring the topic of “What does multifamily housing do?” to get the bigger picture of the effect of multifamily properties in the market.
The Multi-faceted Benefits of Multifamily Real Estate
1. Providing a Place of Shelter
At the most basic of levels, multifamily housing plays an essential role in providing shelter and living spaces for individuals, families, and those in local communities. These types of properties are available in all areas of a country (urban and rural), and it offers a wide range of accommodation options to meet the varying lifestyles and preferences of different people. For those in the real estate industry, this makes it a lucrative and sustainable investment as it indicates a large market with rising demand.
2. Providing an Option for Affordable Housing
Multifamily housing is generally cheaper to rent out when compared to single-family homes. This is because the costs and resources are shared among the multiple tenants living in that building. High rent costs are a growing problem in many countries, and this is one way to provide suitable accommodations for anyone not able to afford stand-alone homes.
3. Providing an Option for any Lifestyle
Every multifamily property is not the same. Depending on the location and requirements of the locals, the property owners would likely renovate the building to match the local’s needs and preferences. There are some properties that cater to young professionals who require urban convenience or retirees who want a peaceful, hassle-free lifestyle. When looking for multifamily homes, tenants can do their research, identify the amenities provided with the housing and weigh their options to decide what is best for them.
4. Options for Senior Citizens
As mentioned previously, there are some multifamily housing options that cater specifically to local individual needs. Some housing communities specialize in providing living arrangements for seniors with the added benefit of age-related services they can utilize. These include accessibility options, healthcare, meal and transport services, support services, and other amenities that will help senior citizens live out the rest of their lives comfortably.
5. Helping with the Issue of Population Density
As more and more young people move to the city to begin their lives, the problem of finding affordable housing is rising. There is only a limited amount of space in a city, and so when the demand keeps rising, the prices of rent will rise as well. Multifamily properties help alleviate this issue by being able to accommodate more than one individual or household within one building. By providing housing options that occupy less space than single-family homes, much-needed contributions are made to the urban planning of the city.
6. Promoting Local Economic Activity
The construction and management of multifamily real estate help stimulate economic growth. During the construction phase, jobs are generated and provided to the locals. Once construction is completed, property management and maintenance help keep the cash flow running, thereby keeping the economy stimulated. Additionally, when there are multifamily communities in a specific area, this can help attract businesses and services that want to take advantage of the density of people living in that area.
In terms of real estate investing, these properties can be both a lucrative investment as well as a social instrument that increases the value of your rental property portfolio.
How Does Multifamily Housing Help the Local Community?
1. Increased tax revenue
With more multifamily properties being built in a community, the local government will be able to generate more tax revenue for the community through property taxes and sales taxes. This increase in tax revenue from multifamily housing can be used to fund many government services, such as education, public safety, and local infrastructure. These investments will help improve the quality of life for residents and make the community a more attractive place for new businesses to set up.
2. Reducing homelessness
In some states in the US, as many as 44 people per 10,000 are experiencing homelessness. These people are not able to afford housing and so are forced to live their lives on the streets. Multifamily homes can help reduce the rate of homelessness by providing affordable housing options for these people.
Socially-conscious real estate investors can even get the help of the government to set up multifamily properties (such as apartment buildings) specifically to help with this problem.
3. Promoting a Sense of Community
Multifamily properties accommodate all sorts of people from different walks of life, providing an avenue for vibrant and diverse communities to exist. Since they are living so close together, residents interact and share experiences with each other, fostering a great local environment to live in. It is only by working together that communities will grow, and so multifamily investing is a great way to bring about this environment.
As we can see, multifamily properties can bring a lot of benefits to local communities. They are able to help grow the local economy while providing affordable housing to its residents. If you’re looking at investing in real estate, multifamily housing may be the way to go, depending on your area.