Here is a look at the top 5 and worst 5 US cities for employment in 2023, according to the Bureau of Labor Statistics:
Top 5 US Cities for Employment as of August 2023
1. Bismarck, ND
- Unemployment Rate: 1.5%
- Average Rent for a 1-bedroom Apartment: $1,169
2. Fargo, ND-MN
- Unemployment Rate: 1.6%
- Average Rent for a 1-bedroom Apartment: $695
3. Baltimore-Columbia-Towson, MD
- Unemployment Rate: 1.8%
- Average Rent for a 1-bedroom Apartment: $1,473
4. Burlington-South Burlington, VT
- Unemployment Rate: 1.8%
- Average Rent for a 1-bedroom Apartment: $1,550
5. Grand Island, NE
- Unemployment Rate: 1.8%
- Average Rent for a 1-bedroom Apartment: $1,245
Worst 5 US Cities for Employment as of August 2023
1. El Centro, CA
- Unemployment Rate: 19.7%
- Average Rent for a 1-bedroom Apartment: $1,600
2. Yuma, AZ
- Unemployment Rate: 18.7%
- Average Rent for a 1-bedroom Apartment: $850
3. Visalia-Porterville, CA
- Unemployment Rate: 9.8%
- Average Rent for a 1-bedroom Apartment: $925
4. Merced, CA
- Unemployment Rate: 8.6%
- Average Rent for a 1-bedroom Apartment: $1,188
5. Bakersfield, CA
- Unemployment Rate: 8.1%
- Average Rent for a 1-bedroom Apartment: $1,025
*The employment data is sourced from the US Bureau of Labor Statistics, while the average rent data is derived from Zumper.
Implications for Passive Multifamily Real Estate Investors
Here are some specific tips for passive multifamily real estate investors in the top 5 cities for employment growth:
- Invest in Class B and C properties. These properties are typically more affordable than Class A properties and can offer higher returns.
- Target neighborhoods with strong job growth. Look for neighborhoods that are home to major employers or that are experiencing rapid job growth.
- Work with a reputable sponsor who won’t skimp on property management. A strong sponsor will know that good property managers can help you maximize your rental income and minimize your expenses.
Here Are Some Tips For Passive Multifamily Real Estate Investors in The Worst 5 Cities For Employment Growth:
- Be cautious about investing in new construction. New construction properties can be more expensive and may take longer to lease up.
- Focus on niche markets. Consider investing in properties that cater to specific groups of renters, such as students, seniors, or families.
- Have a long-term investment horizon. It may take longer to see returns on your investment in cities with slower job growth.
Final Thoughts
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
