Studio Apartments Increase Desirability
Real estate investment is a complex financial industry that relies on numerous factors to bring to profitable fruition. One of the biggest challenges a real estate investor faces is in knowing whether or not to invest in individual homes, large apartment complexes, condos, etc. And looking at the data from Q4 2013 and the dawn of 2014 it appears as if one particular type of apartment will be a great investment in 2014: studio apartments.
The biggest reason that real estate investors ought to be looking toward studio apartments is because since 2008 the average cost of rent for a studio apartment has dropped 17% making the highly sought and desirable for tenants. With the 2% increase in rent average across the San Diego County, that makes studio apartments one of the most affordable options as well as attractive investments for long term real estate investors.
Studio apartments are known for being a simple layout featuring a main room, a bathroom, and a kitchenette. Typically they are considered starter apartments or apartments for solitary individuals, however looking at the economic growth of San Diego County and the position of the market, investing in studio apartments outshines traditional layouts.
The real estate market in San Diego County is shifting, and with this shift numerous tenants and renters will be looking for ways to reduce cost of living. With that in mind more tenants will either opt for larger spaces with roommates, or to lease a studio apartment which, while small and cramped for space, is ideal for privacy and freedom.
Over the course of 2014 home prices should normalize and the market should shift toward a balance between buyers and sellers. This shift toward neutrality will open the door for real estate investors and sellers alike. With that in mind, many people that are finding secure financial footholds in the economy will be saving and looking forward to owning their own residences. Again, this favors the real estate investor right now making any and all apartment building purchases profitable.
At Rent RPM we are real estate management experts and professionals able to operate all of the daily, weekly, monthly, and yearly obligations of any apartment or real estate investment for our clients.