If you’re thinking of investing in residential Real Estate, here’s something to be very aware of when considering the size of units in a multifamily property. The US census data shows that the single households have increased substantially over the last 40 years. In 1970 the average of single person households was 17.1 percent. In 1980 it increased to 22.7 percent and to 24.6 percent in 1990.
My guess is that we’re now over 30 percent of the households in the US are that of a single occupant. In Boston, the housing stock is older and there are fewer small units. Think about it, seventy years ago people got married and had kids early in life. So, at that time, there was no demand for a one bedroom apartment. Fast forward to today and there are many single people and couples looking for that one bedroom with a study style of apartment and because the housing stock is older-there aren’t that many to offer. Simple laws of supply and demand tell you that you’ll get the best return on small apartments.
