I would say that it is, in fact, it’s a better time to buy an apartment house than in the past for several reasons.
American cities, and not just the priciest ones, are more and more the domain of renters. That’s certainly the case in the 11 core cities, the largest cities, according to Census Bureau statistics.
In Miami and New York, more than 60 percent of households are rented. In San Francisco, it’s 57 percent, followed closely by Washington D.C., Houston, Dallas, and Chicago at 52 percent, and Atlanta at 49 percent. Owning a home in these cities is very expensive.
In other cities and localities, homes are more affordable, but a large percentage of Americans still prefer to rent. As job growth draws entry-level or middle-income workers from other parts if the country, they want to rent until they decide whether they like the area and like their jobs.
The demand for apartments is rising so fast that it is starting to overwhelm supply. A report by Furman Center concludes that as the number of renters grows, vacancy rates will fall, rents will rise, and renters will have higher costs for housing.
While these people can afford to rent, they have not had the opportunity to save for a down payment for a home.
With interest rates still low it appears that all signals lead to it behind a good time to buy.
If a four-plex would do for a starter in rental properties, and if you wouldn’t mind living in one unit for a while, you could get the same terms as you would on a single-family home.
Otherwise, mortgage companies would charge more interest for a rental property, maybe 2 percentage points higher than on a single-family home.
At DDH Realty, LLC, we can help you find investment property in the Wilmington, NC area. Call for more information.