REAL ESTATE NEWS

10 SMALLER MARKETS THAT ARE RIPE FOR MULTIFAMILY ACQUISITIONS

Published on Monday, February 22, 2021

Here are the 18-hour cities in secondary markets that are primed for growth.

 

Raleigh-Durham leads the way as the nation’s top market for multifamily acquisitions, according to a new report from CrowdStreet.<

There are, in fact, a number of smaller-sized cities that are ripe for apartment acquisitions, the report finds, as renters have moved en masse to these markets, abandoning pricey urban centers and coastal cities for the suburbs, the Sun Belt, and secondary gateway cities. <

Like their larger counterparts, smaller cities’ multifamily fundamentals have remained relatively stable thanks to government stimulus and eviction moratoriums that have kept rent collections near pre-COVID levels. Collections never dropped below 93% in 2020, according to the National Multifamily Housing Council, helping to push vacancy rates for suburban multifamily product lower (to 6%) and downtown vacancy higher (to 9%). This was reflected in last year’s investment flows with <75.8% of multifamily investment happening outside of major metros, according to Newmark<.<

The overall outlook for these markets remains positive, according to CrowdStreet, especially as interest rates remain low and single family values have spiked. The firm has a “strong conviction
These are the top 10 markets for multifamily acquisitions, according to CrowdStreet:<



  1. Raleigh-Durham: The city was CrowdStreet’s “clear #1 market” for 2021 and ranks third or better across four criteria. CrowdStreet cites its

  2. Austin:

  3. Charlotte:

  4. Salt Lake City:

  5. Phoenix:

  6. Atlanta: The sprawling city is home to the world's< busiest airport, the highest concentration of colleges and universities in the Southeast, and a highly educated workforce. “Atlanta may still classify as a secondary market, but it’s well on its way to attaining primary market status,” according to CrowdStreet.<


  7. Dallas-Fort Worth: DFW is

  8. Orlando:

  9. Nashville:

  10. Tampa-St.Petersburg: This Sunbelt city is attractive across every major asset class, owing in part to< strong population growth, no state income tax, a business friendly environment, and affordability. <