12 Booming Multifamily Markets for 2022

Multifamily continues to be in tremendous demand, and it’s no secret that asking rent rates have risen to historical levels in the last year. In January, the national average asking rent rate hit a peak of a year-over-year increase of 17.8%, but has since begun to cool off and trend downward to 15.3% for the month of May. This is a good indicator there is not an impending “housing bubble” as some have feared. Not only is multifamily investing a great hedge against inflation, but it will likely continue to be a very strong investment vehicle for consistent cash flow and return on investments.

When it comes to identifying thriving markets, there is no crystal ball or methodology to ensure a guaranteed “winner”. However, there are fundamental principles and common-sense data to evaluate, which includes supply vs demand, employment rates, job growth, cost of living, and more. Which markets, for now, appear to have the most promising futures for investors in 2022? Let’s take a look…

#12: Portland, OR

Forecasted Rent Growth for YE 2022: 7.6%

Year-over-Year Rent Growth: 13.0%

Year-over-Year Job Growth: 5.4%

Average Rent (1BR): $1,680

#11: Atlanta, GA

Forecasted Rent Growth for YE 2022: 7.6%

Year-over-Year Rent Growth: 16.2%

Year-over-Year Job Growth: 5.8%

Average Rent (1BR): $1,812

#10: Sacramento, CA

Forecasted Rent Growth for YE 2022: 7.7%

Year-over-Year Rent Growth: 12.7%

Year-over-Year Job Growth: 5.0%

Average Rent (1BR): $1,792

#9: Phoenix, AZ

Forecasted Rent Growth for YE 2022: 7.7%

Year-over-Year Rent Growth: 20.7%

Year-over-Year Job Growth: 4.7%

Average Rent (1BR): $1,547

#8: San Francisco, CA

Forecasted Rent Growth for YE 2022: 7.8%

Year-over-Year Rent Growth: 8.8%

Year-over-Year Job Growth: 6.3%

Average Rent (1BR): $3,230

#7: Charlotte, NC

Forecasted Rent Growth for YE 2022: 8.1%

Year-over-Year Rent Growth: 17.3%

Year-over-Year Job Growth: 3.4%

Average Rent (1BR): $1,559

#6: Tampa, FL

Forecasted Rent Growth for YE 2022: 8.1%

Year-over-Year Rent Growth: 22.6%

Year-over-Year Job Growth: 5.2%

Average Rent (1BR): $1,834

#5: Austin, TX

Forecasted Rent Growth for YE 2022: 8.3%

Year-over-Year Rent Growth: 18.1%

Year-over-Year Job Growth: 9.0%

Average Rent (1BR): $1,735

#4: Las Vegas, NV

Forecasted Rent Growth for YE 2022: 8.5%

Year-over-Year Rent Growth: 22.1%

Year-over-Year Job Growth: 12.6%

Average Rent (1BR): $1,471

#3: Inland Empire, CA

Forecasted Rent Growth for YE 2022: 9.1%

Year-over-Year Rent Growth: 16.8%

Year-over-Year Job Growth: 6.1%

Average Rent (1BR): $1,630

#2: Orlando, FL

Forecasted Rent Growth for YE 2022: 9.1%

Year-over-Year Rent Growth: 24.1%

Year-over-Year Job Growth: 8.6%

Average Rent (1BR): $1,820

#1: Miami Metro, FL

Forecasted Rent Growth for YE 2022: 9.9%

Year-over-Year Rent Growth: 24.6%

Year-over-Year Job Growth: 6.3%

Average Rent (1BR): $2,132

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About the Author

Ellie is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.

Ellie is the host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.

She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.

Sources:

Yardi Matrix

Rent Cafe