After a crazy year for the economy, many are wondering what they should be doing with their money in 2022. Luckily, investing in multifamily real estate is a safe option. Owning and operating a multifamily property is often seen as the most efficient form of ownership in real estate. Below, we discuss the top three reasons why you should invest in multifamily in 2022:
The housing market
We all know the housing market was crazy in 2021. With the continued demand and lack of supply in the single-family market, people are going to continue to turn to apartments for housing. According to Costar, the latest data on Q421 shows the national occupancy rate at an all-time high of 95.5%. This is up from 93.3% at the start of the pandemic. Additionally, rent is going to continue to increase, currently up 11% since the start of the year.
The stock market
The ongoing pandemic and inflation concerns are going to continue to impact the stock market in 2022. With uncertainty surrounding the COVID variants, the stock market will likely continue to be volatile.
As always, investing in multifamily real estate is great for tax relief. This is no exception for 2022. There are several potential tax breaks the IRS grants to those involved in multifamily residential investments; including cost segregation of the various asset groupings found in an apartment unit resulting in accelerated depreciation, the potential for energy-efficient tax credits, investment deductions, and the possibility of deferring tax through the use of 1031 exchanges.
As we’re rounding out 2021, now is the time to consider your financial goals for the new year. Investing in multifamily real estate is one of the best forms of investments due to the passive income that it provides to the investor over a long period of time. Instead of being preoccupied with the stock market or worrying about making a trade, a multifamily investor can place their trust in a competent asset management team to take care of their investment and the property. If you’re interested in multifamily investing or have any questions, please reach out or visit our website at Metonic.net.