Where Can I Invest in Multifamily 2022?
According to Joe Fairless, no matter what kind of multifamily market you want to invest in, you need to know the trends and use them to your advantage. The most profitable markets for investors in multifamily homes have high cap rates and have always made money for their owners. Here are some of the best places to invest in rental properties in 2021. Use real estate heatmaps like the one from Mashvisor to find these markets and figure out which ones are the best places to buy.
Dallas and Fort Worth by Joe Fairless
The apartment market in Dallas-Fort Worth has been red-hot for years. In fact, the market has been the leader in multifamily investment deals in the U.S. for the past six years. In fact, the number of multifamily investments in Dallas-Fort Worth in 2021 was higher than in 2020, and prices went up by an average of 33%. Dallas-Fort Worth used to be thought of as a flyover city, but now investors from all over the country are paying attention to it.
As the number of apartment projects on the market goes up, there is more competition for places to build. As more builders start putting down foundations, there is more competition for available sites. Also, many cities and towns in the DFW area put limits on how many units a developer can build and require construction to be close together. With rents as they are now, this makes it hard to justify a project. But these things don’t change the fact that Dallas-Fort Worth multifamily investment could be a good idea.
Dallas-Fort Worth’s growth is a trend that investors can’t stop. It has been doing better than other markets because of its growing population, which has led to a record demand for multifamily. Danny Baker, who is in charge of CBRE’s DFW multifamily capital markets, says that the area is the most-wanted multifamily market in 2021. In fact, it is more than $1 billion faster than the Atlanta market.
Atlanta
Atlanta’s economy continues to do better than the rest of the market and support solid fundamentals for multifamily housing. This is good news for investors, who are already looking at the opportunities in Atlanta’s multifamily market. Alex Cathcart, who is the Vice President of Multifamily Acquisitions and Development at FCP, and Cristina Istrate, who is an Associate, talk about the multifamily market in Atlanta. Multifamily real estate in Atlanta could be a good choice for investors of all sizes and levels of experience.
Vive Funds says that Atlanta is one of the best places to invest in properties with more than one unit. Margaret Mitchell’s famous book Gone With the Wind made Atlanta famous, and the city still has a lot to offer. With both a high rate of population growth and job growth, Atlanta is a great place to invest in multifamily homes. The area is also home to some of the most well-known corporations in the world.
Los Angeles by Joe Fairless
Joe Fairless pointed out that there is still a strong demand for apartment housing, even though many investors are waiting for the market to turn around. The economy is getting better, rents are going up, and people can now get the COVID vaccine. Investors should look into multifamily homes in Los Angeles. In fact, York thinks that apartments will be the best type of investment next year.
Even though Los Angeles is one of the most expensive cities in the US, that doesn’t stop people from investing there. It beats out places like Dallas-Fort Worth, San Francisco/Northern California, and many others. As a result, multifamily is a great place to invest, and the fact that there aren’t enough homes to go around makes it a great market.
Texas
Joe Fairless describe that opinion, if you want to invest in properties with more than one unit, Texas is a great place to do so. The Texas Triangle, which is made up of the Dallas-Fort Worth, Houston, and San Antonio areas, is one of the most interesting parts of the state. The average growth rate in these places is about 80%, which makes them appealing to investors.
Even though the market in Texas is not affected by the economy and investors as a whole, there is still a lack of housing in some areas. In San Antonio, for example, the median income is going up, which shows that the demand for new apartments hasn’t gone down at all. Another good thing about investing in multifamily homes in Texas is that it is close to Austin, where the Lackland Air Force Base is located. This base employs more than 25,000 people. Even though the economy is bad, Texas is still a great place to invest in real estate with multiple units. In this busy state, there are lots of ways to work and have fun.