Return to Top Factors Affecting Apartment Investors Generally speaking, apartment buildings can be leveraged to a higher degree as compared to other commercial properties. The tax shelter benefits have been favored, and though investors usually do not purchase apartments solely for the inherent tax benefits, they do see the tax shelter benefits as a great plus. In the late 1980s the apartment market slowed as a result of the loss of favored tax treatment. After a period of adjustment, they are regaining popularity. The resale market is generally good.
Less sophistication is required to own and operate.
Broad rental markets. A utilitarian demand exists because people need places to live. Variety of apartment sizes and prices allows various types of investors to enter the apartment ownership market. Responsiveness to entrepreneurial efforts. Professional management is usually available, but at a cost.