Rising Real Estate Prices
Real estate all over the country has seen a dramatic increase in prices over the last two years. Historically-low interest rates, coupled with minimal supply and the ability to work remotely, sent residential real estate sales through the roof. The reshuffling of the real estate market saw consumers reimagining what they wanted in their perfect home.
Many external factors have created a real estate market unlike anything we have ever seen before. While every market is unique, there seems to be one central theme—high prices.
The Affordability Issue
As real estate appreciated at double-digit rates, many people were left on the sidelines, unable to save fast enough to keep up with increasing values. Home builders can’t build fast enough, and land has gotten so expensive that developers can’t even take the first step.
So how do we cope with this affordability issue affecting the Northern Colorado real estate market and most other areas across the country? Multi-family developments may be the key.
Multi-family Developments to the Rescue
Multi-family developments are buildings or complexes that contain multiple housing units, such as townhomes or condominiums. Developers can cut costs by buying smaller pieces of land that become home to higher-density housing. Multi-family real estate is also less expensive to build than single-family residences as units share walls, roofs, utilities, etc.
Prices remain high, and in the Colorado market, they continue to rise, meaning buyers need affordable options. With homebuyers on the hunt for a less expensive option, the demand for multi-family units presents an incredible opportunity for those interested in commercial real estate.
Many commercial real estate investors and developers have set their sights on multi-family developments as they consider their next projects. If you have any questions about the multi-family real estate market in Longmont, CO and our neighboring communities, please contact Steve at WeBrokerCORealEstate or 720-600-9513.
