Why Apartment Investors Should Write off the Popular Jobs-per-Demand Metric

How many jobs does it take to create one unit of apartment demand? It’s a common question many investors want answered before pursuing a deal. The jobs-to-demand ratio has become a staple of nearly every apartment investment package, a standard metric alongside cap rate and rent growth. But can the jobs-to-demand ratio, viewed alone, do what it’s intended to do – predict future apartment absorption?

Source: www.propertymanagementinsider.com

How many jobs does it take to create one unit of apartment demand? What has long been seen as a fairly standard question with a widely accepted ratio, may not be able to accurately predict future apartment absorption, and it probably never has…

After Riding Apt. Value Wave, Investors Taking Long Look at Cashing Out, Diversification

The multifamily markets in most metros are well into the late expansion phase of the real estate cycle, while other product types, notably office and retail, are still in the early stages of their expansion in most U.S. markets…

Source: www.costar.com

Is it time to sell apartments?  As we approach the middle and later innings of the multifamily cycle the question remains on when investors should sell.  With both cap rates and interest rates not expected to go any lower, the only way they can go is up…the real question is when?