With two decades of real estate industry experience, Igor Krivoruchko brings an insightful understanding of apartment communities and multi-family properties to readers. Below, he discusses a few of the major trends behind the steep increase in the popularity of multi-family real estate.
Researching and participating in real estate ventures for years, Igor Krivoruchko is now an industry leader. His career in real estate began in 1999, but his focus on multi-family housing came about in 2004 after he realized the benefits of rental cash flow and the growing trend away from homeownership.
Igor Krivoruchko began by focusing on targeted areas with demonstrated strong growth and many renters to set up new properties. After selecting from the most opportune locations within emerging markets, he and his team started construction on a range of Class-A luxury apartment communities.
It’s from this expert perspective that Igor Krivoruchko shares four insights into multi-family real estate that he believes are instrumental in its growth today.
Fewer Millennials Living at Home
After the housing market crash of 2008, many millennials were forced to either relocate to faraway places to find affordable housing or else move back into their parents’ homes. Today, however, millennials are leaving home for multifamily developments and amenity-rich apartment communities. This migration fuels today’s multi-family housing market and encourages other millennials to get on board.
Baby Boomers Downsizing Houses
As the housing market builds more and more steam, baby boomers who own properties find it useful to downsize to either profit from selling their home or to minimize living costs. This, in turn, is many times the push that gets millennials out the door and closer to multi-family housing units. Baby boomers, on the other hand, are also embracing city life and the affordability (and smaller size) of most multi-family homes.
Developments in Large Cities
Because a growing job market is prompting graduates, millennials, and others to seek out larger cities for work, multi-family units are getting a lot more attention than in the past. Working in densely-packed cities typically causes residents and commuters to rely on local transportation like monorails and bus lines. These transit-oriented developments almost always consist of apartments, condominiums, and other more affordable multi-family home setups that cater to the busy city lifestyle.
Trends in Sustainability
As millennials and city-goers adapt to the city lifestyle, they focus on sustainable elements like on-site parking, wellness features, amenities that out-perform homeownership, and more. In addition, these residents value social connectivity and top amenities that will benefit their busy and often hectic lives. The multi-family housing unit is a clear solution that fits their needs and many times exceeds expectations.
“We’re already seeing how as people change the way they live, work, and interact with each other, multi-family housing provides a lot of benefits that haven’t really been in high demand before now,” says Igor Krivoruchko.