#ALL FACTORS FOR MULTI FAMILY CASHFLOW MAC#

All of these factors combined with substantial stimulus spending by the U.S. There is also a reluctance of elderly people to sell their homes in order to move to retirement communities or nursing homes due to the fear of catching Covid-19 in these settings. This is particularly fortunate for multifamily investors, as housing shortages further drive the demand for multifamily properties.

#ALL FACTORS FOR MULTI FAMILY CASHFLOW MAC#

It is estimated by Freddie Mac that the housing market is under-built by approximately 4 million homes. The first of these reasons is that interest rates have dropped to very low levels during the pandemic, making it significantly easier for many people to obtain a mortgage.Īnother key factor driving home prices upward is the fact that home building dropped significantly after the 2008 housing market crash, resulting in fewer homes being built. There are a number of reasons why home prices have risen so much and will almost certainly continue to rise in 2022. Goldman Sachs believes that home prices will soar even higher and is predicting that home prices will rise 16% in 2022. That is not quite as high as the 17.7% home price appreciation that took place from 2020 to 2021 however, it is still quite high. In fact, a number of high-profile real estate companies, mortgage lenders and financial institutions have all also made similar predictions about real estate prices in 2022.įor example, Zillow predicts that home prices will rise 11.7% in the next year. It is not just me who thinks that real estate prices will be significantly higher in 2022. So, in 2022, real estate should remain a solid investment and multifamily real estate should lead the charts. This is good news for real estate investors. Right now, I am predicting that in 2022, the pipeline will be better than the first three quarters of 2021.

All factors for multi family cashflow