Compared to other real estate assets, apartments are definitely hunting elephants (single family are like mice) The urbanization trend will create even more potential customers. In the last 10 years housing dynamics have changed drastically. Millions of people are moving to city centers each and every year, the allure of home-ownership is on the decline. There are 67.5 million people between the ages of 20-34, which is the largest renting demographic in the United States-and the core of the people moving to city centers. That being, said this demographic couldn't afford to buy their own home even if they wanted to. The burden of student debt mixed with current home prices have created a large barrier to entry. Furthermore, the 2008 housing crisis changed more than the economy-it changed generations psychology. People want less responsibility and a more urban/transient lifestyle.
Why can't we just build more apartments?
We need 4.6 million new apartments units by 2030 to keep up with demand and population growth. However, we lose 100,000 units every year to age and obsolescence, and can only build at a pace of 328,000 new units each year. In turn, there is a major gap in supply. We will come up 1.6 million units short in 2030. The old dream of owning a home, a dog and the white picket fence has been replaced with urban living and a more transient lifestyle. Therefore the market is prime for another 30 years and sets up a major opportunity for us. And unlike other real estate investments it is 100% passive, proven and resilient to market corrections.