The Right PlacesThe Right Time

Growth + Risk Management = Wealth Creation

Multifamily projects of the kind favored by PCRP Group – large Class “B” and “C+” developments – form an important part of the North American housing economy. Also referred to as “Workforce Housing,” these are the safe, comfortable and affordable apartment buildings where middle-class families, recent college graduates and downsizing seniors hang their hats. For these and many other reasons, these kinds of multifamily apartment developments have provided more resilient, stable and higher returns than other investment vehicles for decades, including stocks, bonds, and other real estate asset classes like industrial, retail or single-family properties.

workforce drawing

The Rental Pool Keeps Growing

In the wake of the 2008-2009 financial crisis, demand for multifamily rental units has grown significantly as a percentage of American housing solutions. Millions buffeted by the financial fallout of those years chose, for one reason or another, to rent rather than buy, and the trend has continued.

Whether they sold at a loss, or simply got trapped by the higher lending standards that followed the 2008-2009 crisis, people of all ages have voted with their feet, furniture and families for the affordability, stability and low-risks associated with multifamily rentals.

Demographically, the trend runs the gamut. From downsizing empty nesters to mid-career Baby Boomers to their Millennial generation children, more and more have chosen affordable multi-family rental properties with amenities that would be out of their reach in the single-family space, including pools, gyms, game rooms and other common amenities.  Forecasts from PCRP and other reputable research institutions, including the US  Census Bureau and Harvard University’s Joint Center for Housing Studies, suggest this trend will continue.