Why Multifamily Workforce Housing is the Best Real Estate Asset Class to Invest In?
When financial journalists and advisors are nervous about the housing market, investors in multifamily workforce housing are calm. It is no secret that housing can be as volatile as other sectors of the economy. And, like manufacturing, it can indicate whether trends will be more or less favorable in the next year.
However, in times of increasing general volatility, investors and advisors often see the housing sector as a safer haven, if not a safe haven. What makes multifamily workforce housing, when it is properly bought, a safer investment is the dependability of its cash flows.
Ron Rose, founder of Value Creation Strategies Holdings, favors this idea: “In times of financial stress, asset allocation and cash flow take center stage. Good assets that have productive cash flow not only preserve the original capital but can accelerate low-cost, high-quality bargain hunting, which then becomes a key accelerator of future wealth creation.”
Investor equanimity rests on the fact that multifamily workforce housing—just one sub-sector of the larger housing industry—remains relatively stable long after a downturn begins. But what protects it from the volatility that other sectors of the housing industry experience?
Shravan Parsi reveals more on this Forbes Books article.