Rising Demand for Bergen County Multi Family Homes
While everyone follows the single family housing market there’s another real estate market that’s also important – the multi family home market. Quietly but steadily the demand for multi family homes has been increasing over the past 2 years. This year it’s been picking up a lot of steam and there is no reason to expect this to not continue.
If you consider that a mortgage is the biggest cost of owning property, then it’s easy to understand this. We have a most unusual situation right now because we have both low rates and prices. I have never seen a combination of low interest rates and low prices in my career. This combination has made real estate investing extremely affordable. As a result, investors for multi family homes are coming out in large numbers.
Owner occupier buyers are also out in large numbers. Some are no longer limiting themselves to two family homes. This is because they can now qualify to purchase 3 and 4 family homes as well. In the past, it was rare to see an owner occupier buyer look at anything but a two family property. Low rates and prices changed that.
Other factors creating this increased demand are the law of supply and demand and the rate of return on multi family homes. With new construction being so soft, few multi family homes are being built at a time when demand is rising. More demand with the same supply equals higher rents. Multi families also give better rates of return often than what you can get in a money market fund of CD.
All of this adds up to an increasing demand for Bergen County multi families. Long term I can’t think of a better investment. If you’d like to purchase a multi family home, please call me today at 201-741-8490. This increased demand will drive up prices so the sooner you act the better for you.