Top Multifamily Markets in 2023
As we look towards 2023, the multifamily real estate market in the United States is expected to continue to be a popular investment option for investors. With the pandemic continuing to impact the housing market, the demand for rental properties is expected to remain strong. Here are the top 5 multifamily investing markets in the US for 2023:
1) Atlanta, GA: Atlanta has a strong job market and a growing population, leading to a high demand for rental properties. The city also has a relatively low cost of living, making it a good option for renters. Atlanta is a major transportation hub, with Hartsfield-Jackson Atlanta International Airport being the busiest airport in the world. This makes it an attractive location for businesses and employees. Atlanta is a major cultural and entertainment center, with a number of museums, theaters, and sporting events that attract tourists and locals alike. Atlanta has a strong real estate market overall, with prices remaining relatively stable and rental properties performing well.
2) Dallas, TX: Dallas has a thriving economy and a growing population. The city also has a relatively low cost of living compared to other major metros. Dallas is located in the central part of the country, making it easily accessible from other major cities. The city is home to a number of Fortune 500 companies, including AT&T, ExxonMobil, and Southwest Airlines. In addition, Dallas has a thriving tech industry, with a number of tech companies and startups establishing a presence in the city. Dallas features a diverse corporate environment and economy, thus investing in apartments there offers lucrative options. 340 people relocate to Dallas-Fort Worth every day from a range of areas. These immigrants are looking for less expensive homes, which Dallas provides.
3) Phoenix, AZ: Phoenix has a growing number of businesses and industries establishing a presence, specifically, the thriving tech industry. Phoenix also has a strong tourism industry, with a number of popular attractions such as the Grand Canyon and Sedona within driving distance. Phoenix has a diverse economy and industries such as healthcare, education, and manufacturing contribute to the city's economic growth. This diversity helps to stabilize the market and can make multifamily investing there less risky. Phoenix also has a favorable climate, with sunny weather and low humidity throughout the year.
4) Tampa, FL: Tampa has a dense community and real estate market. Tampa is a stunning metropolitan area as well as one of the best-known tourist attractions in the country. Tampa has a strong retail and dining scene, with a number of popular shopping centers and restaurants located in the city. This area was recently designated one of the trendiest multifamily marketplaces and offers a variety of economic and development options. Tampa's real estate market is continually improving because prices are low and home values sit with a high chance of increasing dramatically over the coming several years. There is a severe undersupply of housing which makes renting favorable.
5) Charlotte, NC: Charlotte is a popular market when compared to the housing undersupply due to the much above-average increase in the prime renter age group. In addition to the population increase in the city, household formation percentages are also rising. The market's expanding financial services sector, together with Charlotte's affordable living and operating costs, are luring (younger) inhabitants. Even while the number of multifamily units being built is growing, there is still a significant shortage in the upscale suburbs where rent increases are outpacing supply. Concerning comparable high-growth areas like Atlanta and Dallas, Charlotte's relative multifamily accessibility compares well.
Overall, these top 5 markets have strong economies and growing populations, leading to strong demand for rentals. Investors looking to enter the multifamily real estate market in 2023 should consider these markets as potential investment options.