The multifamily sector is booming - Club Deal - The "residential" dream continues....

Updated: Jan 30

Multifamily in the USA is the most attractive property submarket in the USA, which is historically proven.

In America, a number of institutional investors have specialised exclusively in this market segment.

In Germany and Switzerland, too, this realisation is increasingly gaining ground, with more and more private and institutional investors looking into multifamily.

Owning a home was long considered a dream.

But that has changed: More and more people are deciding of their own free will to live in rented accommodation.

This opens up promising prospects for investors.

However, this view has also changed in the USA. "A growing number of residents no longer see renting as a short-term phase, but are consciously choosing rental accommodation because it offers a more flexible lifestyle than home ownership".

“However, the trend towards renting is by no means only due to a lack of equity. In fact, more and more US citizens are consciously opting for a rental flat, even though they could easily afford their own house or condominium. "Compared to previous generations, renting is much more socially acceptable today".

The pushers: millennials and baby boomers

Two population groups in particular are driving the demand for rental flats: millennials and baby boomers. For those born in the late 20th century, it is not only the high cost of studying that plays a role, but also the change in life planning. "Millennials are postponing key life decisions, such as buying a house, and they are much more mobile than their parents were."

However, demand for rental flats is also coming from baby boomers, i.e. those born between 1945 and 1965 who have already retired or are gradually approaching retirement age. Many of them no longer want to burden themselves with the costly upkeep of a house and garden; instead, they are drawn to urban, well-connected residential areas from which they can quickly reach restaurants, theatres and medical facilities. These older residents also appreciate the convenience associated with a rented flat.

In the event of damage to the flat, they do not have to take care of the repair themselves, but can simply instruct the property management company to do so.