Workforce Rental Housing: The 'Under-The-Radar' Investment

PRIVATE WEALTH MAGAZINE

by Chris Marsh, Revitate Cherry Tree General Partner

Since the earliest days of the current inflationary run-up, experts have been touting the many inflation-resistant benefits of investing in multifamily real estate. While a strong investment in any part of the business cycle, multifamily is particularly well-positioned right now in the wake of a persistent national housing shortage and the rising costs of homeownership.

But “multifamily” is a broad sector encompassing a broad and diverse range of renters. High-end Class A apartments, off-campus student housing, two-story townhomes, and duplexes—all of these and more are often classified as “multifamily housing.” And yet, these renter segments have markedly different needs and behaviors. As a result, given the differences among these renter cohorts, some multifamily types are more inflation-resistant than others.

This is particularly true with workforce housing—one of the more overlooked and underappreciated segments of the multifamily market. Due to its strong fundamentals and lack of existing housing supply, workforce housing is a worthwhile consideration as an investment, especially during volatile economic times.