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Real estate investing is known as a numbers game. It’s no secret that monitoring trends and continually evaluating data is equally, if not more, important than predicting them. For example, many predicted that the pandemic would cause higher vacancy rates, and therefore lower stability in multifamily investments. Yet, multifamily investing is performing strongly. US Capital Trends recently reported that apartment deal activity is surpassing both the industrial and office sectors combined. Furthermore, multiple markets are also generating double-digit rent growths, boosting investors’ confidence that multifamily housing demands will only continue to increase.
As the multifamily market has heated up considerably, certain markets are strongly dominating in property acquisitions. It’s important to keep an eye on the trending markets, as it may be an indicator as to where the market is heading. Here are the top 12 multifamily markets with the highest number of property acquisitions through May of 2021.
The Top 12 Multifamily Markets with the Highest Number of Property Acquisitions from January 2021 through May of 2021:
12. NYC Boroughs
Number of Properties Acquired: 52
Percentage of Renters in the City: 18%
2020 Population Growth Rate: -.064%
Average Rent: $1,605
11. Minneapolis
Number of Properties Acquired: 53
Percentage of Renters in the City: 55%
2020 Population Growth Rate: 1.08%
Average Rent: $1,565
10. Boston
Number of Properties Acquired: 54
Percentage of Renters in the City: 51%
2020 Population Growth Rate: 0.21%
Average Rent: $3,143
9. Miami
Number of Properties Acquired: 56
Percentage of Renters in the City: 45%
2020 Population Growth Rate: 1.09%
Average Rent: $1,774
8. San Diego
Number of Properties Acquired: 61
Percentage of Renters in the City: 39%
2020 Population Growth Rate: 0.14%
Average Rent: $2,267
7. Denver
Number of Properties Acquired: 66
Percentage of Renters in the City: 51%
2020 Population Growth Rate: 1.48%
Average Rent: $1,680
6. Houston
Number of Properties Acquired: 70
Percentage of Renters in the City: 39%
2020 Population Growth Rate: .07%
Average Rent: $1,132
5. Chicago
Number of Properties Acquired: 73
Percentage of Renters in the City: 46%
2020 Population Growth Rate: -0.28%
Average Rent: $1,908
4. Atlanta
Number of Properties Acquired: 102
Percentage of Renters in the City: 57%
2020 Population Growth Rate: 1.67%
Average Rent: $1,559
3. Phoenix
Number of Properties Acquired: 131
Percentage of Renters in the City: 36%
2020 Population Growth Rate: 1.54%
Average Rent: $1,252
2. Dallas
Number of Properties Acquired: 141
Percentage of Renters in the City: 43%
2020 Population Growth Rate: 0.13%
Average Rent: $1,276
1. Los Angeles
Number of Properties Acquired: 219
Percentage of Renters in the City: 40%
2020 Population Growth Rate: .05%
Average Rent: $2,376
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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 honest, insightful, and thought-provoking discussions on the multiple approaches for 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 at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.
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