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The 10 Best Cities For Multifamily Investing In 2023

Multifamily properties have more than one housing unit on a single property, such as an apartment complex. Multifamily investing can be a great way to generate income, build wealth, and diversify your portfolio.

When it comes to multifamily investing, location is critical. To maximize your ROI, you must choose a city with solid job growth, a robust economy, and a high population density. 

With that in mind, here are the ten best cities for multifamily investing in 2023.

Best Cities For Multifamily Investing In The US

If you're looking for a good return on your investment, these are the cities you should consider in 2023.

1. Salt Lake City, Utah

  • Population: 1.2 million with 0.83% Annual Growth
  • Median Household Income: $80,196
  • Per Capita Income: $34,445
  • Cap Rate: 4.2% as of Q3 2021
  • Median Sale Price: $194,216

Salt Lake City remains an excellent option for real estate investors looking to diversify their portfolio with multifamily residential units. The city has strong economic fundamentals and a better yield spread than adjacent states. 

2. Orange County, California

  • Population: 3.2 million 
  • Median Household Income: $95,935
  • Vacancy Rates: 3.8%
  • Asking Rent: $2,075 monthly
  • Cap Rate: 3.8%
  • Median Sales Price: $351,200

Orange County is experiencing a surge in workers as employers build businesses across significant cities like Anaheim, Irvine, and Huntington Beach. This pushes the demand for multifamily housing units, as evidenced by 43% of the 1.1 million housing units in the area being occupied by renters. 

3. Charlotte, North Carolina

  • Population: 2.6 million with 2.63% annual growth
  • Median Household Income: $66,399
  • Vacancy Rate: 6.4%
  • Asking Rent: $1,423 monthly with a 1.8% year-over-year increase

Charlotte, North Carolina, is a fast-growing diversified economy with a bustling multifamily market. Of the 1.1 million housing units, 35% are occupied by renters. Development is also underway, as there are still many units under construction. 

4. Raleigh And Durham, North Carolina

  • Population: 2 million with 2.10% year-over-year growth
  • Median Household Income: $73,654
  • Per capita income: $38,760
  • Average rent: $1.31 per square foot monthly

Raleigh/Durham in North Carolina remains a stable real estate investment market. New supply lures in investors as developers construct more than 11,000 multifamily units. Of the 863,000 housing units on the market, 36% are occupied by renters, which leaves many opportunities for other investors. 

5. Washington, DC

  • Population: 6.3 million with annual growth of 0.5% 
  • Median Household Income: $105,659
  • Asking Rent: $1,944 monthly
  • Vacancy Rate: 6.4%

Washington, DC, and the other parts of the Northern Virginia suburbs are responsible for the job market growth that drives the housing demand. The area is the leading data centre hub for Amazon Web Services, Microsoft, and Google. Renters occupy almost 40% of the 2.4 million housing units on the market as developers construct more housing units. 

6. Fort Lauderdale

  • Population: 2 million with a 10.6% increase
  • Median Household Income: $61,502
  • Per Capita Income: $3incomeVacancy Rate: 4.3%
  • Asking Rent: $1,735 monthly with an 11% year-over-year increase

Fort Lauderdale is becoming a migration destination for migrating companies and people because of its bustling economy. Renters occupy 38% of the 828,571 housing units. With an increasing job market and room for growth in the volume of housing units, Fort Lauderdale is a great city to invest in multifamily properties. 

7. San Antonio, Texas

  • Population: 2.5 million with 1.31% annual growth
  • Median Household Income: $62,355
  • Vacancy Rates: 6.3%
  • Asking Rent: $1,157 monthly

San Antonio, Texas, may have experienced a recent recession, but its apartment market remains stable. It's 15% higher than the national average as rents are kept low compared to the median household income. With 37% of the 914,421 housing units occupied by renters, this city has room for growth.

8. Orlando, Florida

  • Population: 2.6 million with 1.4% annual growth
  • Median Household Income: $61,875
  • Vacancy Rates: 5.1%
  • Asking Rent: $1,601 monthly

Orlando is a niche market that has a significant economic driver: tourism. The presence of significant tourism infrastructures like visitor and convention centres in the metro area drives job market growth by 3.6%. Although there's less economic diversity, the vital tourism industry creates a surge in demand for multifamily housing units. 

9. Inland Empire, California

  • Population: 4.5 million with 0.61% annual growth
  • Median Household Income: $70,954
  • Vacancy Rates: 1.9%
  • Asking Rent: $1,821 monthly

This metropolitan area in Southern California benefits from the in-migration from the high-cost Los Angeles area. Adjacent to the famous metropolis, but significantly lower, people are moving to the Riverside-San Bernardino-Ontario cities and looking for multifamily rental units. Renters occupy 36% of 1.6 million housing units, and the demand is high, with less than 5,000 housing units under construction. 

10. Boise, Idaho

  • Population: 750.000 with 2.29% annual growth
  • Vacancy Rates: 3.8%
  • Asking Rent: $1,399 monthly

Apartment rents in Boise have declined slightly but remain 26% higher than in the past three years. With a growing population, renters already occupy 38% of the almost 300,000 housing units available. 

Start Investing in Multifamily Residential Properties

When investing in a multifamily property, you must do your research and due diligence to ensure that you make a wise investment. Look for cities with strong population growth, a thriving job market, and a relatively low cost of living. 

If due diligence sounds tedious, you can always invest in real estate funds that place your money on multifamily residential housing. Saint Investment Group is a professional real estate fund that can give you access to secure and high-return real estate funds. You may also try real estate syndication to diversify your investment portfolio further.

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