Recent data has shown that economic activity in Prince George’s County (PG County) is on the rise. PG County is Maryland’s second largest county and home to over 900,000 residents. Between the third quarters of 2016 and 2017, the county saw the creation of 6,175 new jobs. As economic development increases, Prince George’s County proves to be a profitable landscape for multifamily real estate investors.
There are a number of factors used to determine what counties in Maryland are best suited for multifamily investment. Employment is one of the key economic indicators that drive housing demand, new construction, rental growth, and multifamily investment opportunities.
Buying and renovating older Class B and C apartment buildings has proved to be a good strategy for widening the renter demand pool. Savvy investors working value-add opportunities seek to improve older buildings. The strategy typically is to raise rents with certain improvements that attract residents who want more than a typical, aging Class B or C property but can’t afford to pay the type of rent currently being charged for new Class A apartments.
The past year has been very favorable to the Baltimore Metro multifamily market. Following a strong year of job growth in 2016, demand for workers remains steady in a number of sectors including healthcare, government and education.
The demand for affordable housing remains strong and provides economic benefits to communities. The Low-Income Housing Tax Credit (LIHTC) is an investment incentive for affordable housing to help meet the demand. It offers tax credits and subsidies to investors who build housing for residents that meet certain income level requirements.
The new zoning code, called “Transform Baltimore” includes many changes to promote development and reuse of the city's old buildings. It also encourages walkable neighborhoods to improve the quality of life in Baltimore.
The Baltimore metro’s multifamily market will likely exhibit signs of easing off as the pace of new supply somewhat outstrips demand. This is contributed to a large quantity of new units coming online due to historic conversions and new construction.
By adding some creative amenities, you can instantly improve your overall marketability. These amenities don’t necessarily need to be luxury-scale offerings. Several seemingly subtle, low-cost upgrades could have an enormous impact on the way people perceive your building.
Apartment building sales across the Baltimore Metro region continue to set a hot pace as vacancy rates remain near post-recession lows. The multifamily sector remains strong as apartments attract people who seek the flexibility of renting. Those renters include a range of age groups, including young professionals, students and retiring baby boomers who are leaving their single-family homes.
Apartment amenities reflective of the renters needs and desires are in demand! Renting trends are turning the tables on tradition. Today’s renter is thinking smaller in terms of space and cost. Smaller apartment living doesn’t mean missing out on amped-up amenities and conveniences. Many units include 9-foot ceilings, a washer/dryer, and multipurpose storage that often convert into a sleeping space.