Monday, November 10, 2014
GlobeSt.: Job Growth, Rent Growth - A Matched Pair
Similar to my previous post, 'PorTechLandia: Tech Sector is Fueling Portland with Growth', 9 Nov. 2014, GlobeSt. recently published an article on the direct correlation job growth and rent growth. There is a direct correlation between apartment rents increasing with employment growth and this is a good thing. You can read the GlobeSt. article here.
However, the risk each market faces is an oversupply of new multifamily construction. We are in an unprecedented time with the Baby Boomer and Millennial generations leaving and entering the workforce. Some experts are predicting the demand for apartment units to maintain a steady balance throughout the next several years. More information on Baby Boomers and the increase multifamily owners are seeing can be read in another recently published GlobeSt. article found here.
Only time will tell. Either way, contact an HFO team member to see if there have been demographic shifts in the neighborhood of your investment property to make sure you are positioned for maximum returns.