Gen Y Trends Boost Multi-Family Investors

Chicago, IL, August 09, 2013 --(PR.com)-- The housing crash of 2008 impacted many facets of the U.S. economy, and the Gen Y demographic was one of the hardest hit during the recession. According to a recent Independence Survey by PNC Financial, 40% of millennials and more than 28% of 25- through 29-year-olds still live with parents or relatives, delaying the standard process of moving out, renting an apartment and eventually purchasing a home. Multi-family investor and Pangea Properties CEO Al Goldstein weighs in on how this trend is playing out in the multi-family housing market.

“Being at the forefront of the Great Recession has instilled a certain degree of trepidation into the younger generation. They’re no longer making five-year plans to purchase homes,” says Goldstein. “Renting is quickly becoming the first choice among these young professionals, who could very well see lifelong renting as a feasible replacement for the old American dream of owning a home.”

Uncertainty in the economy and low yields in the capital markets have pushed investors towards the housing market in recent months. While there continues to be instability, the multi-family market is a wise place to invest long term, so long as it’s done with preparation, financial strength and a proper business model.

“We see the shifting trends among millennials as a huge opportunity to rehab buildings that will be great long term investments," continues Goldstein. "As the majority of our residents are longer term renters, we have been well schooled on what it takes to meet the expectations of a generation not willing to settle for less. This new generation of renters is looking for more than just a temporary residence, which will ultimately raise the rental standard. Our focus has always been on a better quality product and service—amenities, maintenance, upkeep—all of which are imperative to retaining residents for extended periods of time.”

Goldstein goes on to explain that demand for multi-family properties is likely to continue as unemployment numbers turn around. “We are still trying to pull out of a costly recession, but as unemployment rates slowly improve, it will be interesting to see the shift in rental trends for 20-somethings as they adapt to a new economic outlook. An increase in demand for high-quality rental apartments is anticipated as a major part of that shift."

About Pangea Properties:
Pangea Properties is a private real estate investment trust (REIT) targeting the distressed residential multi-family real estate market. Pangea was founded in 2008 by Al Goldstein and Steve Joung with one mission: to bring service, value and care to its residents. The entrepreneurs saw an opportunity in the Chicago market to create a real estate firm that serves as both the property owner and the building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has over $250 million into 8,000+ apartment units throughout Chicago, Indianapolis and Baltimore, with the goal of continuing to expand within current markets as well as into new markets. Pangea has been highlighted by several media outlets including WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. Pangea’s founder Al Goldstein has been named one of Crain’s 2013 40 under 40 and is a recipient of the Ernst & Young Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com, www.Facebook.com/PangeaRE, www.linkedin.com/company/pangea-properties or on Twitter @PangeaRE.