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The Affordable Housing Dilemma
More than any other property class, affordable housing is considered the white whale (or perhaps black sheep) for real estate investors. Despite the dire need for affordable housing in the marketplace, a strategy for developing affordable multifamily that meets suitable returns continues to elude investors.
While the trend towards luxury, A-class continues, many industry insiders say we are nearing the ceiling for sustainable luxury multifamily. Meanwhile, there remains no shortage in the demand for affordable workforce housing.
‘Taking Blight and Making Light’
When it comes to affordable housing, the biggest deterrent for multifamily developers is the perceived lack of sufficient returns to make it a worthwhile investor. The majority of the affordable housing market is comprised over older, B and C property classes in often overlooked areas leading many multifamily developers to believe that the returns aren’t there.
However there are some key points about the affordable multifamily market that developers overlook:
- Workforce housing consumers are often long-term tenants, ensuring steady returns
- Older, low-cost properties are ripe with value-add potential
The need for affordable housing isn’t going away. If you are willing to put in the effort, deals are out there. With the right tools and resources, you can carve out your own niche in the affordable multifamily market
About our Guest
Eddie Lorin is the Founder of Strategic Realty Holdings. Through his philosophy of impact investing, Eddie has purchased and transformed over $3 billion multifamily real estate establishing 180 communities and providing 40 thousand units to the affordable multifamily market.
Coming from a diverse real estate background, Eddie has made it his life’s mission to address affordable housing concerns.
This episode, Eddie shares his investment philosophy and how it led him to the affordable multifamily market. He shares how he was able to carve out a niche to meet a badly needed demand and offer tips for investors interested in affordable housing investing.
You do not want to miss this episode on carving out your niche in the affordable multifamily market!
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