We all know that nowadays
innovation is instrumental to growth and success in every field, and this is
particularly true for the real estate sector which is currently one of the most
competitive ones. In order to ensure that his work will bear fruits, Luther Ragsdale, a real estate agent
and coach located in Atlanta, Georgia, equipped himself with the knowledge to make informed investment
decisions. In this article, Ragsdale, who has his own real estate agency, provides an overview with the
essential information of multifamily asset development. In doing so he will
point the main demand drivers and conclude with the factors that
make the multifamily real estate a widely held and strategic real estate asset
class.
The multifamily real estate sector
currently accounts for the second -largest share of institutional investors'
real estate holdings, with approximately 25% of the U.S commercial real estate
stock. For a long time, multifamily was considered as a strictly residential
asset, but over the last few years, things have changed to a degree that
multifamily has become one of the four primary commercial real estate asset
classes. This asset class spans a wide spectrum of residential properties. In
general, the real estate industry classifies multifamily properties as Class A,
B or C, depending on important factors like quality, age, location, rent, and
amenities, among others. Mr. Ragsdale, with his team of real estate agents, has
been working with multifamily assets for a long time now, which has helped him
achieved outstanding performance.
One way of analyzing the
multifamily demand drivers in the United States is by considering that
households are mostly made of either owners or renters. Ragsdale reports that according to the latest statistics from the U.S. Census
Bureau, homeownership stands at 62.9%, which is the lowest level the last 25
years. That means that there are around 117.4 million households in total.
Population growth is one of the biggest drivers. As the population grows, so
does the number of households. Multifamily assets may be the solution to the
growing problem of metropolitan overcrowding. For Luther , this could also be one of the reasons why it becomes so
popular in recent time.
Multifamily and mixed-use
developments have many merits, like residents having access to living
facilities, as well as facilities for working and playing. As an expert with
global expertise spanning more than 15 years, Ragsdale
is convinced that the one things that make multifamily real estate so
appealing, is the obvious fact that it offers convenience which usually can't
be found in the gated stand-alone condominiums.
Multifamily assets in key urban
areas can stimulate the growth of the local economy by bringing business
activities. This could create a more dynamic business environment and thus
provide more employment opportunities. As Ragsdale writes in his blog posts on Bigger Pockets, the
economic benefits of it are yet to be felt, but he is strongly convinced that
in the years to come, this will cause a more dynamic and less centralized
economic landscape, and the whole thing is, in fact, a matter of time.
