Are you planning on investing in a multifamily property in 2021? If so, there’s still time to find a great property, especially in the Western Region of the United States.
In this article, I’ll provide you with a breakdown of which Western Regions in the United States you should consider investing in, and what you should expect from the multifamily market as a whole for the remainder of 2021.
Top Western Regions For Multifamily Investing In 2021
#1 – Phoenix Arizona
Phoenix continues to be the top western region for multifamily investing in 2021 because of the simple fact that this area continues to be a relocation ‘hotspot’ from California.
During the first two months of 2021, investor activity in Phoenix was hot as investor activity totaled more than $1.4 billion compared to $864 billion during the previous time last year.
The Phoenix area also saw a 6% increase during the first two months of 2021 as the area has also enjoyed strong population growth.
One of the biggest multifamily deals in Phoenix occurred during February as Millburn and Company closed on an 832-unit property for $178.5 million.
Phoenix’s proximity to denser, more expensive cities had been fueling migration of both residents and businesses during the second part of the last cycle and the pandemic has exacerbated that trend. This has benefited the metro’s multifamily market, boosting demand for multifamily units, which pushed the average rent up 0.8 percent on a trailing three-month basis through November, to $1,259. Even so, the figure trailed the $1,465 U.S. average, which was flat for the fourth consecutive month.
Employment growth in the 12 months ending in September marked a 4.2 percent decline, well above the -9.3 percent national level. The unemployment rate slid to 6.2 percent in September, following a spike in the number of coronavirus cases in midsummer. October preliminary data pointed to an increase to 7.5 percent. Two sectors added jobs in the year ending in September, including the metro’s largest—trade, transportation, and utilities—which expanded 2.6 percent. The sector benefited from its ability to adapt to the current situation and from Amazon’s planned expansion, which was projected to bring 3,000 new jobs ahead of the holiday season.
Development maintained pace, with 8,218 units delivered in 2020 through November and another 26,483 under construction. Meanwhile, nearly $4.4 billion in assets traded, for a per-unit price that rose 12.8 percent year-over-year to $182,669.
#2 – Las Vegas, NV
Coming up strong after Phoenix is Las Vegas, Nevada and it was no surprise to investors that Vegas returned strong following a hard year due to Covid-19.
Multifamily transactions in Las Vegas during the first two months of this year totaled $77.7 million, with the largest transaction being a $28.5 million apartment complex closing in South Las Vegas.
Transactions are still down as a whole compared to where they should be during this time of the year but the good news is with Pandemic restrictions easing, along with millions of people getting vaccinated nationwide, we can only expect the Las Vegas multifamily market to continue rebounding in 2021.
#3 – Denver Colorado
The third top destination on our list of top hot spots for multifamily investing in Denver, Colorado.
With more than $500 billion transactions during January and February 2021, and the biggest transaction being a $101.6 million purchase by Preedium Group in Arvada, Colorado, the Denver area is showing significant promise as more investors see it returning to pre-Covid levels.
How To Find The Right Multifamily Property In 2021
All three of these cities are going to be excellent hot spots for multifamily investing in 2021 but the reality is that regardless of you invest in Denver, Phoenix, Dallas, or another city, you still have to know how to find the right property.
Once you pinpoint the city that you want to invest in multifamily, use these tips for finding a great property for sale.
Tip #1 – Driving For Dollars – One of the most time-tested methods for finding multifamily properties is driving for dollars because this gives you the ability to see for yourself what’s happening in an area, as you look for properties yourself.
Tip #2 – Connect With A Local Realtor – Partnering with a local real estate agent is another ideal method for finding multifamily properties because in many cases, a local Realtor® will know of properties that are for sale before anyone else.
Tip #3 – Start Networking With Other Investors – Regardless if you use sites like Bigger Pockets or other real estate investment groups, networking is an excellent way to find properties because, during your networking, you may also be able to connect with other investors who are interested in selling their properties.
Tip #4 – Search For Off Market Properties – If you’re unable to find multifamily properties in your target area, you should turn your attention to off-market properties. To find these deals it’s best to establish a team of people on the ground who will alert you of properties that may be for sale in your target area.
Besides establishing a team, you can also approach owners directly via cold calling and other marketing methods, or you could promote your services on the internet, targeting owners who may be thinking of selling their properties.
Contact Trier Capital
At Trier Capital, we specialize in sourcing, acquiring, and managing multifamily properties nationwide so accredited investors can relax and watch their portfolios grow.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
For more information about the services that we can offer you, contact us today by calling (630) 229-2383 or click here to connect with us online.