Insights Jul 15, 2018 Elion Partners

Multifamily Asset Opportunity Grows

In July, two crucial data points were released, painting an even prettier picture for investing in multifamily real estate. Firstly, the Mortgage Bankers Association Market Composite Index showed a decline in mortgage applications and an uptick in rates. Secondly, RENTCafe released a landmark study based on U.S. Census Bureau estimates, which showed that 3.6 million fewer families with kids own a home, compared to 10 years ago. Additionally, the number of families with children living in rentals has increased by 1.9 million over the same period of time. As the report states, fewer young families own homes due to several factors, including: the big fallout during the housing crisis, air-tight lending rules, a shortage of entry-level homes, and skyrocketing home prices in the currently booming U.S. economy.

This is compounded by the fact that population growth is expected to increase to nearly 347 million people by the year 2025, up from 26 million. Multifamily living is becoming the norm and will only continue. These new data points affirm the trends Elion has been tracking as part of its multifamily real estate investment strategy. As you may have seen last month, and The New York Post recently reported, Elion acquired two multifamily buildings of 67 units in Manhattan. Elion and joint venture partner Dalan Management purchased the asset for approximately $66 million, marking the second multifamily asset to support Elion Real Estate Fund IV. As they say: watch this space.