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.
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If you're looking for a good return on your investment, these are the cities you should consider in 2023.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Population growth, economic stability, rental demand, affordability, market circumstances, and political stability are factors that determine the top cities for multifamily investments.
Risks in investing in multifamily properties in top cities include competition, market fluctuations, property management difficulties, and financing challenges.
The top cities for multifamily investing offer higher rental demand, stable economies, and favorable market conditions compared to other markets.
A master in Investment, Marketing, and Capital Raising.
Nic has honed his focus on the Real Estate and debt markets with Saint Investment Group and pursues large-scale Distressed Asset purchases with his partners and syndications.