Impact Housing REIT

The Good REIT seeking to generate positive returns for investors, while improving quality of life for residents and communities


Impact Housing REIT

The Good REIT seeking to generate positive returns for investors, while improving quality of life for residents and communities

    Targeted Investment Period: 5-7 years
    Investment Profile: Value Add Impact
    Qualified By: SEC Reg A+
    Minimum Investment: $1,000
    Sponsor Experience: Over 40,000 units (As principal or advisor)
    Distribution Period: Quarterly
    Property Type: Multifamily Fund




    Webinar Recorded October 3rd, 2017


    Key Deal Points


    • Strong Track Record: The Sponsor team has acquired and transformed over $3 billion in multifamily properties since 2001 (either as Principal or Advisor) and has raised approximately $260M from private investors. In the last 7 years, the Sponsor has delivered, on average, an annual cash-on-cash return of 8.55% and an internal rate of return (IRR) of 24.74% on 28 completed projects consisting of 40 individual properties. For a complete summary of our track record, see “Past Performance: Our Track Record So Far future performance” in our Offering Circular. Note: Prior performance does not guaranty future results.
    • Targeted Portfolio: Impact Housing will seek to acquire and renovate distressed and/or neglected apartment community in “B/C” locations nationwide. Leverage generally will not exceed 80% of purchase price or 75% of total cost (including renovations), whichever is less.
    • Investor-Friendly Annual Return Waterfall: Before our Sponsor receives anything, Investors are entitled to a 7% annual return on their investment. Note: There is no guaranty that investors will receive any return on their investment, or get their capital back.
    • Simple Tax Reporting Because Impact Housing is a real estate investment trust, or REIT, investors will receive only a simple Form 1099.
    • Impact – Driven, Community-Focused: Impact Housing REIT is partnered with the Healthy Apartment Property Initiative (HAPI) Foundation, a 501C-3 non-profit, and will provide free food and health and wellness programming, as well as fitness education and activities to kids and families living in its communities.
    • Audited Financials: The shares in Impact Housing are being offered under Securities and Exchange Commission Regulation A. As such, Impact Housing is required to produce annual reports containing audited financial statements of the company for each fiscal year, presented in accordance with GAAP, including a balance sheet and statements of operations, company equity and cash flows.
    • Available to ALL Investors: Impact Housing is available to ALL Investors - accredited and unaccredited, domestic and international - over the age of 18. Further, Investors may invest as little as $1,000.

    Investment Summary

    Maximum Offered $35,000,000
    Minimum Offered $3,000,000
    Minimum Investment $1,000
    Security Type Series A Investor Shares
    # of Shares Offered 3,500,000
    Price per Share* $10.00
    Investment Term 5 to 7 Years
    Sponsor Experience: Over 40,000 units (As principal or advisor)
    SEC Qualification Reg A+ (Title 4, Tier II)
    Geographic Focus U.S. National
    Property Type Value-Add, Multifamily
    Unit Range Per Property 100 to 500 units
    Investment Range Per Property $3MM to $10MM

    Impact Housing REIT, LLC, (“Impact Housing” or the “Fund”) a newly organized Delaware limited liability company, was formed to acquire, redevelop, and manage residential real estate assets in the United States, with a focus on acquiring and improving undervalued multifamily residential properties that provide affordable value to residents. The Fund is managed by affiliates of Strategic Realty Holdings, LLC, or the Sponsor, an experienced real estate investment firm. Impact Housing intends to qualify as a real estate investment trust, “REIT,” for federal income tax purposes.

    Impact Housing’s goal is to deliver good returns to investors, while providing good value for Impact Housing's residents. Impact Housing will capitalize on low prices and low interest rates in cities where millions of people need comfortable, safe, healthy places to live that they can afford. When Impact Housing invests in these neglected rental properties, they “add value” through many improvements which have a direct and positive impact on families and communities. At the heart of Impact Housing's effort lies a desire to create a more peaceful and enjoyable quality of life for its residents and surrounding communities.

    The Fund is seeking to raise capital by offering to the public limited liability company interests designated as “Series A Investor Shares.” The minimum Impact Housing is seeking to raise in this offering is $3,000,000, and the maximum is $35,000,000. The Sponsor and/or its affiliates might purchase Series A Investor Shares and if they do their purchases will count toward the $3,000,000 minimum.

    Initially, the Series A Investor Shares will be sold for $10.00 per Series A Investor Share, with a minimum initial investment of 100 Series A Investor Shares (i.e., $1,000).


    The Fund intends to make distributions periodically, as conditions permit. The order of distributions will be governed by the Fund’s LLC Agreement and by the Authorizing Resolution. The Fund will divide distributions into two categories:

    • Distributions of ordinary operating cash flow (primarily in the form of rent payments received, after expenses); and
    • Distributions of the net proceeds from “capital transactions” like sales or refinancing of properties (“net proceeds” means the gross proceeds of the capital transaction, reduced by the expenses of the transaction, including repayment of debt).
    Equity Contribution
    Series A Interests $35,000,000 maximum
    Distribution Waterfall
    Distributions of ordinary operating cash flow will be in the following order of priority:
    First Investors will receive all the operating cash flow until they have received a 7% cumulative, non-compounded annual return on their invested capital;
    Second Any remaining operating cash flow will be distributed 65% to the Investors on a pro rata basis, and 35% to the Manager.
    Distributions of the net proceeds from capital transactions will be made in the following order or priority:
    First Investors will receive all the net proceeds until they have received a 7% cumulative, non-compounded annual return on their invested capital;
    Second Investors will receive any remaining net proceeds to return an allocable portion of the capital they invested* (see explanation below);
    Third Any remaining net proceeds will be distributed 65% to the Investors on a pro rata basis and 35% to the Manager until Investors have received a “internal rate of return” of 16%** (see explanation below); and
    Fourth Any remaining net proceeds will be distributed 50% to the Investors on a pro rata basis and 50% to the Manager.

    *When it states that all distributions of the net proceeds from capital transactions will first be distributed to Investors until they have received an “allocable portion” of the capital they invested, it means that when the Fund enters into a capital transaction like a sale or refinancing, and decides to distribute some or all of the proceeds (as opposed to reinvesting the proceeds in other properties), the Manager will allocate all of the capital contributed by Investors (less any previous distributions of capital) among all of the properties owned by the Fund, based on an estimate of the fair market value of each property (less debt encumbering each property). This will allow the Manager to determine how much capital is allocable to the property involved in the capital transaction.

    **“Internal rate of return” is a financial concept that measures the overall return from an investment, taking into account all the money you put in as well as all the money you took out, as well as the timing of each contribution and distribution. Solely by way of example, you would have an internal rate of return if you contributed $100 to an investment and: Liquidated the investment in one year for $116; or Received no distributions for five years, and at the end of the fifth year liquidated the investment for $210.03; or Received a payment of $16 at the end of year, and received your $100 back at the end of the fifth year. Impact Housing calculates the internal rate of return using the XIRR function in Microsoft Excel, the spreadsheet program.

    Fees


    Reimbursement: The Fund must reimburse the Manager for expenses the Manager incurs in connection with the Offering, before the Offering Circular is qualified by the Securities and Exchange Commission.

    Estimate: The Fund currently estimates that those expenses will be approximately $300,000.

    Asset Management: The Manager will charge the Fund a monthly asset management fee equal to 0.14583% of the Investors’ aggregate capital accounts as of the last day of each calendar month, or approximately 1.75% per year. An Investor’s “capital account” will generally be equal to the amount the Investor paid for his, her or its Series A Investor Shares, less any capital that has been returned to the Investor.

    Estimate: The amount of the asset management fee will depend on (i) how much capital is raised in the Offering, and (ii) when and how much capital is returned to Investors. If the Fund raised the maximum $35,000,000, the Manager would receive approximately $612,500 per year. However, Impact Housing cannot make a reasonable estimate at this time.

    Acquisition of Property: With respect to direct investments in real estate, the Manager will be entitled to receive an acquisition fee equal to 1.5% of the total cost of each property acquired on Impact Housing's behalf, which will be payable in addition to any brokerage or other fees payable to third parties. With respect to Joint Ventures, the Fund, as the managing member of a Joint Venture, may be entitled to an acquisition fee to the extent negotiated with the financial partners in such Joint Venture, all of which will be payable to the Manager. In addition, the Manager shall be entitled to a 1.0% acquisition fee on the total cost (to the Fund) of the asset, payable upon the closing of the transaction.

    Estimate: The amount of the acquisition fee will depend on how much property the Fund buys (either directly or through a Joint Venture), which will in turn depend on how much capital is raised in the Offering and how much leverage the Fund uses. Impact Housing cannot make a reasonable estimate at this time.

    Property Management: The Fund allocates 5.0% of its gross monthly rents to property management fees, which the Manager believes is a market rate. If the Manager is able to engage a third party property manager for less than 5.0%, the Manager is entitled to retain the difference.

    Estimate: The amount of the property management fee will depend on the gross rents the Fund receives and the actual costs of third-party property management services. Impact Housing cannot make a reasonable estimate at this time.

    Disposition of Property: With respect to direct investments by the Fund, the Manager will receive a disposition fee equal to 1.0% of the total sale price of each property. With respect to Joint Ventures, the Fund, as the managing member of a Joint Venture, the Manager might be entitled to a similar disposition fee to the extent negotiated with the financial partners in such Joint Venture. In addition, the Manager shall be entitled to a 1.0% disposition fee on the final sales price (to the Fund) of the asset, payable upon the closing of the transaction.

    Estimate: The amount of the disposition fee will depend on the selling price of assets by the Fund and any Joint Ventures and, in the case of Joint Ventures. The terms the Manager negotiates with the Joint Venture partners. Impact Housing cannot make a reasonable estimate at this time.

    Financing: With respect to direct investments by the Fund, the Manager will be entitled to receive a financing fee equal to 1.0% of the amount of each loan placed on a property, whether at the time of acquisition or pursuant to a refinancing. This financing fee will be in addition to any fees paid to third parties, such as mortgage brokers. With respect to Joint Ventures, the Fund, as the managing member of a Joint Venture, may be entitled to a similar financing fee of 1.0% to the extent negotiated with the financial partners in such Joint Venture, all of which will be payable to the Manager.

    Estimate: The amount of the financing fee will depend on the amount of leverage (debt) the Fund and any Joint Ventures use and, in the case of Joint Ventures. the terms the Manager negotiates with the Joint Venture partners. Impact Housing cannot make a reasonable estimate at this time.

    Construction Management: The Manager may provide construction and/or construction management services on behalf of the Fund. If so, the Manager shall be entitled to compensation that is (i) fair to the Fund, and (ii) no greater than would be paid to an unrelated party at arm’s length.

    Estimate: The amount of the construction management fee will depend on the nature and cost of the construction services the Manager provides. Impact Housing cannot make a reasonable estimate at this time.

    Other Fees: The Company engages third parties to provide a variety of other services, including insurance and marketing. If the Manager is able to engage third parties at lower-than-market rates, then the Manager is entitled to retain the difference.

    Estimate: The amount of other fees will depend on the nature of the services the Manager provides and how much the Manager charges for such services. Impact Housing cannot make a reasonable estimate at this time.

    Reporting

    Within 120 days after the end of each fiscal year of the Fund, Impact Housing will provide Investors with (i) a statement showing in reasonable detail the computation of the distributions made by the Fund, (ii) audited financial statements of the Fund, (iii) a statement of the income and expenses of the Fund, and (iv) a description of the Fund’s investments (including those held through Joint Ventures), and a valuation of the investments performed in good faith by the Manager.

    In addition, each year the Fund will provide Investors with a detailed statement showing:

    • The fees paid to the Manager and its affiliates; and
    • Any transactions between the Fund and the Manager or its affiliates.

    In each case, the detailed statement will describe the services performed and the amount of compensation paid.

    Within 60 days after the end of the first three fiscal quarters of each fiscal year, the Fund will also provide to Investors a report containing, among other items, an overview of the Fund's investments and Joint Ventures, unaudited financial statements, a summary of the distributions made during the quarter, and a statement of such Investor's capital account.

     

    Sponsor


    The Sponsor


    The Sponsor of the Fund is Strategic Realty Holdings, LLC, which Impact Housing refer to as “SRH.” The principal owner and manager of the Sponsor is Edward P. Lorin.

    From 2001 through 2008 Mr. Lorin and his team served as the exclusive advisors to private investors in connection with the purchase, renovation and operation of approximately 110 under-performing apartment communities, acquiring more than $2 billion in real estate. From 2008 to the present, as the sole principal of SRH and one of two principals of Strategic Realty Capital, LLC, which Impact Housing refer to as “SRC,” Mr. Lorin has purchased another 72 underperforming communities in transactions valued at over $1 billion. Mr. Lorin has managed or purchased apartment communities in California, Nevada, Arizona, Washington, Colorado, Texas, Louisiana, Mississippi, Alabama, Georgia, Tennessee, Florida, North Carolina, South Carolina, Virginia, Illinois, and Maryland.

    The 72 communities purchased by Mr. Lorin and his team involved approximately 39 different offerings of securities, raising approximately $260 million from approximately 50 outside investors. Impact Housing refer to each of these securities offerings and the properties they included as a “Project.” All of the Projects involved buying residential rental (income-producing) real estate. None of the Projects involved primarily buying commercial real estate (except commercial real estate that was incidental to the primarily residential component of the project), nor building or developing properties from the ground up (i.e., new construction).

    All of the Projects are similar to the Fund in the following respects:

    • They all involve raising money from investors.
    • They all involve conducting the same business as the business in which the Fund will be engaged, i.e., investing in underperforming multi-family apartment communities.
    • Each of the Projects also has investment objectives that are indentical to the investment objectives of the Fund.

    Because of these similarities, investors who are considering purchasing Series A Investor Shares from the Fund might find it useful to review information about the Projects. Of course, prospective investors should bear in mind that prior performance does not guaranty future results. The fact that a prior Project has been successful (or unsuccessful) does not mean the Fund will experience the same results.


     Hold Period MonthsUnitsChange in NOI (%) From Purchase DateAverage Annual Cash on Cash DistributionIRR
    Project Six 23.08 216 53.64% 5.36% 46.60%*
    Project Nine 28.9 436 43.83% 9.46% 15.77%*
    Project Ten 20.27 256 38.88% 10.76% 14.90%
    Project Eleven 22.6 347 10.50% 4.89% 12.36%
    Project Twelve 23.77 268 33.52% 10.49% 18.38%
    Project Thirteen 48.03 1271 78.20% 3.73% 31.01%
    Project Fourteen 32.03 155 294.83% 5.54% 24.75%
    Project Fifteen 38.13 200 76.29% 7.58% 29.22%
    Project Sixteen 38.1 296 52.61% 1.40% 22.62%
    Project Seventeen 34.53 638 41.01% 9.14% 14.41%
    Project Eighteen 38.6 346 148.74% 0.36% 30.83%
    Project Nineteen 37.6 282 35.98% 21.48% 61.25%
    Project Twenty 43.13 156 129.83% 22.50% 11.63%
    Project Twenty One 37.67 400 33.77% 4.65% 24.24%
    Project Twenty Two 41.07 484 76.15% 7.00% 25.71%
    Project Twenty Three 44.57 160 19.07% 7.03% 19.91%
    Project Twenty Four 43.6 195 218.10% 1.98% 13.05%
    Project Twenty Five 43.63 440 32.46% 6.15% 11.59%
    Project Twenty Six 54.93% 176 405.10% 6.09% 20.11%
    Project Twenty Seven 34.03 466 96.68% 3.98% 18.88%
    Project Twenty Eight 48.03 200 14.79% 7.39% 12.72%
    Project Twenty Nine 53.2 140 92.37% 24.47% 19.64%
    Project Thirty 52.3 536 141.74% 8.68% 37.90%
    Project Thirty One 52.53 264 93.55% 11.02% 34.82%
    Project Thirty Two 51.67 218 573.50% 7.60% 20.28%
    Project Thirty Three 57.7 330 640.03% 6.04% 25.59%
    Project Thirty Four 56.5 240 81.47% 18.47% 40.00%
    Project Thirty Five 63.17 475 1097.90% 6.24% 47.33%
    Average 41.55 343 166.23% 8.55% 24.74%

    *Projects Six and Nine each included two properties, of which one property in each Project has been sold.

    The IRR for the Project reflects the property that was sold.

    All of the Projects involved buying residential rental (income-producing) real estate. None of the Projects involved primarily buying commercial real estate (except commercial real estate that was incidental to the primarily residential component of the project), nor building or developing properties from the ground up.

    There have been no major adverse business developments or conditions experienced by any Project that would be material to purchasers of the Fund’s Series A Investor Shares.

    None of the Projects:

    • Has been registered under the Securities Act of 1933;
    • Has been required to report under section 15(d) of the Securities Exchange Act of 1934;
    • Has had a class of equity securities registered under section 12(g) of the Securities Exchange Act of 1934; or
    • Has, or has had, 300 or more security holders.

    How It Works


    Impact Housing’s goal is to deliver good returns to investors, while providing good value for Impact Housing's residents. Impact Housing will capitalize on low prices and low interest rates in cities where millions of people need comfortable, safe, healthy places to live that they can afford.

    Like other real estate properties, multi-family apartment communities are typically graded as “A,” “B,” or “C,” with “A” the highest in quality and “C” the lowest.

    Impact Housing will identify C-quality multi-family apartment communities in A- or B-quality locations, buy those communities for C-level prices, and make physical alterations and other improvements, increasing the quality from C to B or even A. As a result of alterations and improvements, Impact Housing expects to attract more qualified tenants and increase rents accordingly, which then results in cash flow and appreciation.

    When Impact Housing invests in these neglected rental properties, they “add value” through many property improvements which have a direct and positive impact on families and communities.

    At the heart of Impact Housing's effort lies a desire to create a more peaceful and enjoyable quality of life for its residents and surrounding communities. The Sponsor, the team behind Impact Housing, has done this before and delivered, on average, an annual cash-on-cash return of 8.55%* and an internal rate of return (IRR) of 24.74%* on2 8 completed projects (consisting of 40 individual properties) in the last 7 years. *Past performance is not indicative of future results.


    Impact Housing will re-brand properties, starting with entryways, leasing offices, and common areas. In addition they will install new fixtures, appliances and flooring within units and will create more open spaces and community gathering areas such as playgrounds, clubhouses, BBQ areas and dog parks if the site allows.

    Impact Housing believes the proposed interior and exterior improvements will attract more qualified tenants and increase rents resulting in increased cash flow and capital appreciation. The Sponsor has successfully implemented this strategy over the last 15 years acquiring approximately 180 multifamily residential properties throughout the U.S with a total of approximately 40,000 units and has achieved, on average, a 48% increase per year on net operating income, a 8.55% annual cash on cash return, and an IRR (Internal Rate of Return) of 24.74% since 2008.*

    *Prior performance does not guarantee future results. The fact that the sponsor has been successful with these programs does not guarantee that the fund achieve similar results.



    In addition Impact Housing provides free food to kids in afterschool programs and Health and Education Programming for residents and their families through the Hapi Foundation a 501C3 organization. Hapi Foundation was established in 2013 and brings education and sustainable health, nutrition, and fitness programs directly to the doorsteps of children and families living in apartment communities. Hapi’s efforts are focussed on promoting healthy lifestyle habits in children to reduce the growing rates of obesity, diabetes, and other chronic diseases in the United States.

    Impact Housing intends to engage third parties to manage its apartment communities at the property-level. Management agreements with third parties will be negotiated on an arm’s length basis and include terms that are market for specific geographic areas or community sizes. These agreements will generally provide that the property manager has control of all operational aspects of the apartment community, including employee-related matters, advertising and rental services, and is reimbursed for all direct and indirect operating expenses. The property manager must generally maintain each apartment community in good repair and condition and make such routine maintenance, repairs and minor alterations as it deems reasonably necessary.

    Impact Housing’s management agreements typically provide for an initial term of 12 months, with automatic renewals unless either party gives notice of non-renewal. However, the management agreements are generally terminable by either party without cause upon 30 days’ notice, and may also be terminated immediately upon the occurrence of specified events.

    Impact Housing REIT will always borrow money to finance part of the acquisition cost of a property, and might also borrow money to finance all or a part of the cost of renovating property. It will typically borrow from banks or other institutional lenders.

    The Fund’s guideline – which can be modified based on market conditions, interest rates, and other factors – is to borrow no more than 80% of the purchase price of an apartment community or 75% of the total cost, whichever is less.

    For example, if the Fund purchases a community for $5 million and plans to spend another $500,000 on renovations, then 80% of the cost would be $4 million while 75% of the total cost would be $4,125,000. In this case the Fund would typically limit its borrowing to $4 million. In some cases – again depending on a number of factors, including what Impact Housing believes is the predictability of the cash flow a project is expected to generate – it could even borrow up to 90% of what it believes to be the value of a project. This would normally be through a separate “mezzanine” financing facility.

    Usually, the Fund or a wholly-owned subsidiary will buy a direct fee simple interest in real estate. Occasionally, however, it might make indirect investments in real estate through one or more joint ventures with third parties (Impact Housing refers to these as “Joint Ventures”). A typical Joint Venture would involve forming a partnership or limited liability company with the Fund as one owner and one or more third parties as the other owners. Each owner, including the Fund, would contribute capital, financing, know-how, and/or other assets to the Joint Venture. The Joint Venture itself would buy the direct fee simple interest in the real estate.

    Normally, but not always, the Fund or the Manager will serve as the managing member, general partner, or equivalent of the Joint Venture and thereby retain ultimate managerial control.

    Prospective Acquisitions


    Impact Housing REIT investments are expected to be spread throughout the United States. The Manager expects Impact Housing REIT’s investment portfolio to consist of direct equity interests in individual properties. The Manager will generally target equity investments ranging from approximately $3 million to $10 million. Impact Housing plans to utilize its established processes in acquisition, asset management, and disposition that are consistent and replicable.

    Impact Housing REIT’s Sponsor is in pursuit or in LOI negotiations on several acquisitions. Below are a few of the properties in the pipeline. These properties exhibit the typical characteristics of properties the Fund will pursue in aggregating a portfolio of multiple properties on behalf of the REIT.

    Location Mesquite, Texas
    # of Units 190
    Year Built 1959-1972
    Purchase Price Range $8MM-$9MM

    Impact Housing REIT is actively targeting a multifamily acquisition in Mesquite, a suburb of Dallas, which maintains a strong submarket of around 96%+ occupancy. The community is close to the freeway, within walking distance to schools and just minutes from shopping and dining areas. Units are currently renting at 25-50% below market comparables. The property itself had new roofs installed this year, has a lot of potential for value -add interior upgrades and is a good candidate for “green financing” through Fannie and Freddie --making it an especially attractive acquisition target for the fund.

    **Note that these properties may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that these specific properties will end up being one of the multiple assets owned by the fund.

    Location Colorado Springs, Colorado
    # of Units 64
    Year Built 1967
    Purchase Price Range $7MM-$8MM

    Impact Housing REIT is actively targeting a multifamily property located in Colorado Springs, one of Colorado’s most economically strong cities and tourist destinations. The community sits atop a hill facing west toward the mountains and overlooks a bustling commercial district. The property is ideally located with elementary, middle and high schools all within 3 miles, and several colleges within 7 miles. The city maintains a strong economy. Units are currently renting below market. The property itself is having new roofs installed and has a lot of potential for value add interior, exterior and amenity upgrades. Given its ideal location, this property is another attractive acquisition target for the Fund’s portfolio.

    **Note that these properties may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that these specific properties will end up being one of the multiple assets owned by the fund.

    Location Las Vegas, Nevada
    # of Units 117
    Year Built 1975
    Purchase Price Range $15MM-$16MM

    Impact Housing REIT is also actively looking to acquire a Las Vegas, Nevada high rise with scenic views. This is the first time the property is being sold. It has a strong potential for value add interior upgrades and the addition of new amenities, as well as additional revenue through the AirBnB vacation rental market.

    **Note that these properties may or may not ultimately close escrow subject to due diligence and other various factors. Impact Housing REIT cannot guarantee that these specific properties will end up being one of the multiple assets owned by the fund.

    Acquisition Strategy


    Impact Housing investment acquisition strategy is to identify C-quality multi-family apartment communities in A- or B-quality locations; buy those communities for C-level prices; make physical alterations and other improvements to those communities, increasing the quality from C to B or even A, and as a result of the alterations and improvements, attract more qualified tenants and increase rents accordingly.

    Target acquisitions generally display one or more of the following characteristics:

    Not only does Impact Housing REIT seek to invest in certain properties and communities that display certain characteristics but also are located in geographic regions with diverse and active economies and markets that possess strong prospects for sustained long-term economic growth.

    Target geographies for Impact Housing REIT acquisitions will generally exhibit the following characteristics:

    • Job Growth*
    • Population Growth*
    • Decreasing Rent Concessions
    • Market-Specific Barriers to Entry
    • High Occupancy Rates
    • Diverse Local Economies
    • Recovering Economies

    *Above the national average.

    Impact Housing believes that changing demographics will have a significant impact on the apartment industry during the next two decades. Certain demographic shifts will favor apartment communities such as the following:

    INCREASES IN THE FOLLOWING:

    • # of Young People Entering the Workforce and Creating households
    • # of Single-Parent Households
    • Size of Immigrant Population
    • # of Housing Expenditures by College-Aged Tenants (who seek to exhaust available funds in tax-favored college savings plans, such as “529 plans”)

    SHIFT IN THE FOLLOWING:

    • General population moving away from suburbs – towards downtown
    • Older tenants now wanting to live closer to major university hospitals and educational facilities

    Leadership