Discover the advantages of multifamily investments: higher cash flow, reduced risk, and long-term growth potential for building a resilient portfolio.
Multifamily has outperformed all other real estate asset classes from 1986 – 2022, as measured by the NCREIF Property Index annual return, and we expect this trend to continue given the long-term housing trends.
LRE believes that well-located, high-quality rental housing will continue to be a strong performer over the long term due to a variety of macro, demographic, and financial factors:
LRE believes that well-located, high-quality rental housing will continue to be a strong performer over the long term due to a variety of macro, demographic, and financial factors:
A growing renter population, coupled with a chronic housing shortage, suggests a continued positive outlook for the sector.
more people are renting, and renting for longer periods of time due to limited savings, the rising cost of homeownership (vs renting), delaying of life events and student loan exposure, support continued, long-term rental demand.
Apartments provide a cost-effective shelter to renters with flexibly, short-term leases, relative to long-term commitments like homeownership.
The short-term nature of apartment leases allow rents to keep pace with inflation.
The significant demand drivers in the multi-family sector make this a compelling asset class, providing dependable, durable cash-flow:
Multifamily has outperformed every major asset class and real estate product type, with higher returns and lower volatility.
Real estate allows investors to take advantage of depreciation, a tax shelter that nearly eliminates the taxes due on distributed cash flow.
Unlike single-family homes, where value is based on local comps, Multifamily properties are valued based on revenue-generation (NOI).
Private real estate has a low correlation to the volatility of public markets, as demonstrated by chart on the right.
There is a large, and growing, buyer universe for Multifamily assets which provides significant liquidity for the sector.
Multifamily properties benefit from economies of scale, lower acquisitions and operating costs, and offer a lower-risk.
Thank you for your interest in LRE. We are committed to delivering a high level of responsiveness, market intelligence and depth of relationship in all of our work.
(704) 253-0520
justin@lremanagementllc.com
#106, Mamaroneck, NY 10543
LRE Management LLC
