Are you interested in investing in multifamily properties but you’re also wondering where the top multifamily markets are for 2020? If so, you come to the right place!
In this article, I’ll provide you with a breakdown of where the top multifamily markets are for 2020 and what you can expect from multifamily in 2021.
Best Places To Invest In Multifamily In 2020
Thanks to recent research from the CBRE, we know that the top places to invest in multifamily in 2020 have been Phoenix, Boston, Atlanta, and Austin Texas.
These areas have been ideal places for investing in multifamily this year because they’ve enjoyed excellent population growth, low unemployment, and high demand for multi-family rental properties.
Yes, cities like Austin Texas are excellent for investing in multifamily properties but, another great reason why you should consider investing in apartments, Town homes, or Condos in these cities is construction.
Construction has remained strong in these cities, and this is a good sign, considering that the economy has taken a beating in 2020 due to coronavirus and the ensuing lockdowns that we’ve had.
Some of the other major metropolitan areas that have been great places for investing in multifamily properties during 2020 include Nashville Tennessee, Lexington Kentucky, Phoenix Arizona, and Knoxville Tennessee.
Minneapolis was also a great place to invest in multifamily properties at the beginning of the year but, due to the civil unrest that Minneapolis had during the summer months, the city has seen a decline in rent growth as renters are eager to move out of the city for safer areas.
Spotlight On Smaller, Urban Areas
Even though cities like Austin Texas will always be popular for multifamily investors, smaller, urban areas have also been in the spotlight during 2020.
Cities like Driftwood, Bastrop, Bee Cave, Cedar Park, and Dripping Springs have all been excellent places to invest in multifamily properties in Texas because many people want to live close to the city, but far enough away, so that they can have the feeling of living in a small town.
If you’re thinking about investing in a smaller town that’s near a big city, ideally, you should be looking for a city that has a population of less than 2 million.
Even though overbuilding and liquidity are generally the biggest risks that are involved with investing in smaller markets, in 2020, we’ve seen a favorable amount of supply and demand in smaller towns that doesn’t show any sign of slowing down in 2021.
Besides Texas, some of the other towns that you may want to consider investing in across the United States include Dayton Ohio, Memphis Tennessee, Greensboro North Carolina, Tucson Arizona, and Colorado Springs.
The good news is that these smaller metropolitan areas have enjoyed rent growth of 4% or higher in 2020 and that rent growth can be expected to continue well into 2021.
2020 Has Been A Year For Growth
Yes, 2020 has been an up-and-down year, especially due to coronavirus and the lockdowns.
For multifamily investors during the lockdown, most investors were writing deals, focusing on planning, acquisitions, refinances, or investing in new developments.
Although some multifamily markets like Washington DC, San Francisco, or New York had a rougher time than other markets, the reality is that these markets may be prime places for investors to invest in multifamily properties in 2021.
As we get closer to 2021, and the coronavirus help crisis is resolved, we can expect to see multifamily properties continue to be in demand in 2021 and beyond.
Most renters prefer multifamily properties over single-family properties because a typical multi-family property offers them amenities while the average single-family home offers no sense of community or amenities.
Another reason to consider investing in multifamily properties in 2021 is that interest rates have never been lower and when you finance a multi-family property conservatively, with a fixed rate debt, it’s an attractive strategy for 2021.
Before you invest in any multi-family property, make sure you do your due diligence and invest in a property that’s in a growing location where the local economy is thriving, safety, plenty of things to do and amenities nearby.
Tips For Investing In Multifamily Properties In 2021
One of the biggest things that we’ve seen occur in 2020 is an increase in people working from home due to Coronavirus.
The work-from-home trend is only expected to continue in 2021 it so if you plan on investing in an apartment complex next year, you should make sure that you capitalize on the demands of remote workers.
Remote workers are ideally some of the best tenants that you’ll ever have because you can count on them to be financially stable, hardworking individuals who take care of the units that they live in.
Some of the things that remote workers are searching for in multifamily properties include properties that are pet friendly, have excellent Wi-Fi, plenty of on-site amenities, excellent parking options, a great swimming pool, and a shared conference area that they can use for meeting with work clients if necessary.
Contact Trier Capital
Are you the type of investor who wants to invest in multifamily properties but, you don’t want to do all the difficult work of sourcing, acquiring, and managing those properties yourself? If so, we can help!
At Trier Capital, we save you the hassle of purchasing and managing a multifamily property yourself.
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, contact me today by calling (630) 229-2383 or click here!