A Look at the Top Buy Markets for Multifamily

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In its latest multifamily report, Ten-X ranked the top five buy and sell markets for multifamily investment through 2022, even factoring in a potential recession in the next two years. The buy markets have strong fundamentals with economic and population growth, while the sell markets have matured already for this cycle with ultra low vacancy rates and high cost of rents.

“The buy markets are places where we have the strongest outlook for multifamily fundamentals and valuation prospects. The sell markets are really the inverse of that,” Matthew Schreck, senior quantitative strategist at Ten-X, tells GlobeSt.com.

Houston, Las Vegas, Raleigh, Atlanta and Salt Lake City made the top five list, while San Jose, Oakland, Miami, San Francisco and Milwaukee topped the sell list. “The top markets tend to be markets that are strong and have been strong economically and demographically with an undercurrent of relative affordability,” says Schreck. “There is still demand in the sell markets, but they are facing a stiffer supply pipeline, and they are already really expensive with already really low vacancy, so there is upward pressure.”