Investors in the apartment sector have enjoyed steady, significant gains in both income and appreciation since the global financial crisis. While some might expect an inevitable slowdown in the sector, Tim Ballard, co-founder and president of Buchanan Street Partners, believes positive demographic trends will continue to fuel solid performance in the future.
“Returns have been phenomenal in the [apartment] space,” says Ballard. While performance varies on a regional basis, Ballard notes construction remains muted and demand should remain strong.
He points to several demographic trends that will continue to produce strong demand for apartments, such as extended rental years for millennials as they shore up their finances and delay household formation, and the growing demand from retiring baby boomers who seek to downsize and the escape the upkeep and maintenance related to homeownership.
In a recent podcast interview, Ballard also discusses how apartment developers and owners are seeking to establish a sense of community for their tenants, in addition to introducing more unit and property amenities and nicer high-end finishes.
For more intel on the apartment sector, listen to the complete interview with Ballard.
