Multifamily Housing News: Why Workforce Housing Is a Smart Play in 2023 by David Goss

David Goss
David Goss

Chicago, IL – Multifamily fundamentals have begun to strengthen following uncertainty in 2022. Only time will tell if this trend continues, given the economic storm clouds on the horizon. But there is one sector that performs well in good times and bad: workforce housing. Investors who don’t have these assets in their portfolio should take a look at it now.

The turbulence coming out of the pandemic has led to fluctuating rents within the multifamily sector. According to a recent report from Yardi Matrix, average asking rents in the U.S. ended a four-month skid, increasing moderately by $3 in March. However, the report also showed that year-over-year growth—while still positive—dropped by 90 basis points across the country. Analysis from RealPage shows that apartment absorption ticked up in the first quarter of 2023, the first time the sector experienced positive absorption in four quarters.

Of course, not all multifamily properties perform equally. Workforce housing—which HUD classifies as residential options that are attainable for working families, typically households earning between 80 percent and 120 percent of area median income—is almost always a good investment prospect since demand tends to remain strong in both bull and bear markets.

Read the full article from Interra Realty’s Co-Founder and Managing Principal David Goss at Multifamily Housing News