The housing crisis is finally showing slow signs of improvement. Commercial and retail properties have suffered in all areas of the country, but according to an article from Realty Times, apartment rentals have remained the strongest sector.
Of all building rentals, multi-family apartment units have held up the best. Buildings have stayed full, and rent has remained stable or even increased. Particular cities with the lowest vacancy rates, around 5 percent, include Pittsburgh, San Diego, Philadelphia, Washington D.C., San Jose and Albuquerque. Areas where vacancy rates are higher, reaching up to 12 percent, include Tucson and Phoenix. Still, the average for the country is 7.4 percent, which is lower than it has been in past recessions.
What’s the reason for this? It could mean that people are afraid of the real estate meltdown and are resorting to renting instead of purchasing. It could mean that in order to find jobs, college graduates have moved to where the jobs are, forcing them to move into housing that they can afford. It could mean that people losing their homes through foreclosures are moving into apartment buildings. It could just mean that apartment living is always going to be needed, no matter what the economy or the real estate market is looking like.
Whatever the reason, it definitely means that if you’re looking for extra revenue, apartment buildings may be the smartest investment purchase you could make. To search for buildings available in your area, go to BuyOwner.com and search under Multi Unit or Apartment Building listings.