This is a great article by Mad Hedge Fund Trader (thanks Stephan for the pointer!) that talks about why the demand for low-end multifamily housing is set to explode, due to three primary factors:
- Explosive population growth in cash short immigrants
- Generational demand of Gen X'ers and Millennials with lower standard of living than parents
- Downsizing needs of 80 million retiring baby boomers
This will lead to rising rents and lower vacancy in more cost effective housing. As Class-C owners, we are in the sweet spot to take advantage of these trends.