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Multifamily sector is red hot for investors

Multifamily sector is red hot for investors
Written by Publishing Team

Among the reasons for the high revenue is the influx of new residents moving to certain areas, according to the report. The report found that the Phoenix market, for example, experienced the largest increase in household immigration nationwide during 2020. The city also ranked first in total immigration with California’s Inland Empire, which benefited from an influx of residents who moved east from Los Angeles to Riverside .

At the same time, the capitalization rate pressure was greater in Phoenix; Tampa, Florida; and Charlotte, North Carolina. All three markets saw a decline of more than 100 basis points from the previous three-month period.

About the most prominent investment points, she said: “We affectionately call it the Sunbelt Market.” These will be markets in the south and southwest. By name, some of the companies that are doing the best—and are expected to continue to do better—are Phoenix and metros in Florida like Tampa and Fort Lauderdale in the South Florida area. We also see Riverside – San Bernardino. So really the southern part of the United States is doing exceptionally well.”

Another factor attributable to the massive growth in multiple families, Rasmussen said, is that many of them are being priced outside the housing market on the back of ever-rising home values.

“Oh my God, those home prices are skyrocketing,” she said. “It’s just amazing. People have to live somewhere. Although a lot of people want to get into the single-family market, they’ve run out of prices. Especially millennials who have been priced for a long time.”

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