Interesting article from CBRE entitled “DOES INVESTMENT IN WORKFORCE HOUSING STILL MAKE SENSE?” Here are a few highlights from the paper:
- From the recession through Q2 2018, multifamily rents have risen at 3.6% per year on average, yet wage levels have increased by only 2.2% on average over the same period.
- For 46% of all renter households in the U.S. (both multifamily and single-family renters), rent payment represented 30% or more of their incomes. For renter households who made less than $50,000 per year, 73% paid 30% or more of their incomes on rent.
- NCREIF one year returns in Q2 averaged 9.57% for garden assets versus the below-average high-rise return of 4.92%