As the year winds down, many investors hold onto unused cash, hesitant to deploy it in today’s uncertain market. While this might feel prudent, leaving your money stagnant is a missed opportunity to grow your wealth. Savvy investors know that multifamily real estate development projects offer a compelling way to put cash to work, even in turbulent times. At Countrywide, we provide robust opportunities to help you fuel your financial future.
Historical trends underscore multifamily real estate’s stability and resilience, particularly during economic challenges. During the 2008 Great Recession, multifamily investments outperformed other asset classes like stocks and bonds. In 2021, amidst the ongoing COVID-19 pandemic, multifamily investments delivered an impressive 18.9% return, according to NCREIF.
If market volatility has left you hesitant, now is the time to reframe your strategy. Here are three key reasons multifamily real estate is a smart move heading into 2024:
1. Rising Demand
The demand for multifamily housing is stronger than ever. Rising mortgage rates and limited single-family home availability have created a surge in rental demand. The U.S. housing market faces a shortfall of nearly 4 million units, projected to grow to 6.5 million by 2030. These dynamics result in high occupancy rates and rental growth, making multifamily real estate a reliable and predictable investment. With demand consistently outpacing supply, this sector offers investors a stable path to strong returns.
2. Inflation Hedge
Multifamily real estate provides an effective hedge against inflation. Shelter is a fundamental necessity, meaning rents and property values tend to rise with inflation. As costs increase, so do rental incomes, which can help protect your capital and generate additional returns. Moreover, including multifamily investments in your portfolio adds diversification, helping to balance risks when other investments underperform. With its strong correlation to inflation, multifamily real estate helps safeguard your wealth during uncertain times.
3. Growth Potential
Investing in multifamily development allows you to capture returns throughout the process — from land acquisition and construction to lease-up and long-term appreciation. At Countrywide, we liken this to planting a “money tree.” First, we identify the perfect location, then “plant the seeds” with construction. During lease-up, we attract tenants, nurturing steady income growth. Over time, these investments grow, allowing you to reinvest returns into new projects, building a stronger financial foundation.
Why Countrywide?
With decades of experience developing premium multifamily properties, Countrywide offers investors opportunities backed by strong fundamentals and proven success. Our projects are designed to deploy lazy cash into ventures that combine stability with exceptional growth potential.
As 2024 approaches, don’t let your cash sit idle. Reach out today to learn how multifamily real estate can help you achieve your financial goals. Together, we’ll build a strategy to ensure your money works as hard as you do.
Sources
CNN, Fannie Mae, NCREIF
