Real Estate Journal Online

Although the housing market is showing “moderate signs of improvement” according to the latest National Housing Survey from government-controlled GSE Fannie Mae, Americans still lack confidence in the overall economy and, as a result, are feeling less financially secure, leading to weak mortgage demand and only a marginal improvement in consumer attitudes[1]. The report indicates that consumers are feeling better than they did in 2010 about the economy and the housing market, but not enough better to do much about it. However, there is a silver lining for some real estate investors at least: 43 percent of respondents to the survey expect rents to increase in the coming year and many are planning to pay rather than risk taking out a mortgage on a new home. In addition, more real estate investors are purchasing multiple residential properties to accommodate new rental demands, and some analysts predict that there will be 125,000 to 200,000 additional residential rental units by the end of this year thanks, in large part, to investors paying cash[2]. This is good news for the real estate market at large as well as would-be renters who want to live in a real home rather than a multifamily unit.

Reports from sources like Moody’s and S&P indicate that multifamily rental units are also being snapped up in record volumes across the country. In fact, last week a Las Vegas auction netted $1 billion in multifamily unit transactions[3].

Are you getting involved in the rental real estate business? Do you think multifamily units or residential properties are the better alternative?

Thank you for reading REJournalOnline!

Let us know what area of the real estate market you think is primed for investors right now in the space below.

---

[1] http://www.mortgagenewsdaily.com/05122011_fannie_mae_housing_survey.asp

[2] http://www.housingpredictor.com/2011/home-sales.html

[3] http://www.lvrj.com/business/multifamily-housing-lures-buyers-122295649.html?ref=649