What do you think are the top markets for Multi-family investing?

Question

Top 5 Markets for Multi-family

I always find this interesting in the being of each year and mid year it is updated.

Published by National Multi-family Housing Council the top markets domestically. Dallas is again on the list and year after year I find Dallas to be near the top of the best markets in the country.  I owned 3,200 units their and loved investing in that market.

1. Denver

2. Phoenix

3. Dallas

4. Atlanta

5. Orlando

These statistics are published on several criteria.  Population and growth economic development, rent increases or stabilization, unit pricing and availability of product.   Hope this brings a little knowledge your investing plans.

Ryan Daigle · Answer

@Ashley Mitchell don't do it! NC has several of the top ranks MFH markets in the country, including Raleigh-Durham, the Triad, and Charlotte. Plus we have a great, low-tax, business climate which is powering our decades long positive population migration trend.

Ryan Daigle · Answer

@Paolo Sciarra I'll echo @Todd Dexheimer and add Wilmington and Asheville (smaller markets, obviously).

Additionally Greenville, Spartanburg, Columbia, and Charleston in SC are growing as well.

I track population growth trends in this publicly available spreadsheet as I believe it's a very good indicator of the positive long term trends that support the MFH asset class (not the only one, but a great one).

https://docs.google.com/spread...

It's all based on government data and identifies both perennially high growth metros, as well as recent accelerators (Flint, Michigan - really!)

Hope that helps.

John Casmon · Answer

Thanks for sharing, @Mike MorawskiThese are great markets, but like @Todd Dexheimer said, it makes it hard to find "deals" when everyone is going off of the same market criteria. These lists rarely factor in VALUE so while they have great fundamentals (population growth, job growth, etc), when you add in value or the ability to FIND a good deal, the list might change. Given recent events, I would lean more on markets driven by "essential businesses" and have low cost of living metrics.

Brian Briscoe · Answer

I agree with @Todd Dexheimer - those may be top of that one list, but those markets get to be highly competitive.  I do so love the Carolinas...  Change the evaluation criteria slightly and all the sudden Raleigh-Durham, Triad, and Charlotte are 3 of the top-10 areas.  Though I'm a bit more in line wiith @Ryan Daigle -- I like upstate SC.  It's on the I-85 corridor between Charlotte and Atlanta, and the factors that are fueling growth in those two cities are also driving economic growth in Greenville, Spartanburg, Asheville, Anderson, Clemson, etc., without the competition you see in Charlotte or Atlanta.  Charleston is growing fast, but I don't like dealing with hurricanes...  Columbia metro is also seeing significant growth - especially in Lexington County (my wife's hometown), so of course we like that market.

I'll take any Carolina of those Carolina cities right now over that top 5.

Todd Dexheimer · Answer

North Carolina has markets that are better than the "Top 5." When your city hit's the Top 5, it means everyone else knows about it and it's at the peak

Ashley Mitchell · Answer

@Ryan Daigle Wow! Thanks so much. I'm in Greensboro. It will surely be a money saver to stay in this state. When the time comes for me to get ready to invest( i'm still saving money at this time ) I will  be open to moving to either of those areas,( because I will need to house-hack.) I'm so glad to hear that, Thank you so much!

Todd Dexheimer · Answer

Those are for sure hot markets. Whether they're still good for investing or not is a different story. Can you actually find a deal that makes sense in those markets?

It's definitely challenging to find anything worth pursing in those markets.

Terry Zannella · Answer

@Mike MorawskiHi Mike, thank you for the information and reference. I find myself looking at other markets from time to time for comparison to where I’m currently investing (Phoenix).

I have a question, because you mentioned Dallas a couple times. I look at Dallas and most of Texas as a reasonably affordable area with good opportunities for appreciation, landlord friendly environment, and a lot of the other positive factors that are often mentioned.

I do have one concern about the state of Texas as a whole, that I don’t see discussed too often and that is the amount of property taxes.

I am not against taxes, but rather curious from someone who has invested there. Do you find it hard to find good deals when factoring that in? Most properties I run numbers on look great until I add those in.

Curious about your thoughts. What benefits do you see that offset that specific expense, or am I missing something?

Thanks.

Eric Boyer · Answer

@Ryan Daigle Amazing spreadsheet! You must have put a lot of time into this. Thanks for sharing! Living in New England, this will definitely help a newbie like me in deciding which out of state market to invest in.

Ashley Mitchell · Answer

@Todd Dexheimer thank you so much for that information, I will surely stay here to invest.

What do you think are the top markets for Multi-family investing?

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