New Construction Multifamily - Does it work or not?

[Joel Owens]

I recently read a good article on building new.

The article was talking about there is a big demand for middle class people wanting to rent but no new construction.

Most of what is being built is Class A. It was saying due to rising construction costs that a minimum point of profitability is developers need to hit at least 2,000 rent in month per door to make it work otherwise they do not build.

Suburban communities tend to not want new apartments around anyways. Middle Income is about 54,000 so that is about 1,300 a month in affordable rent.

So for middle class it was saying take older apartments 20,30,40 years old that have lower rents and update them but make sure the new rents are not above the median income earner level.

Multifamily New Construction