That being said, not all are faring as well. The key to being successful in real estate investing, from my perspective, is rooted in being conservative, patient, and highly selective of which markets to invest in. Due to the pandemic, some investors are struggling with misconceptions of how to respond to these challenging times, but the truth is that even in a global pandemic, multifamily real estate investing is standing strong.
As you look at the markets providing the stronger total returns vs the ones performing “poorly”, it's important to understand that the average US multifamily total return is 2.3%. As you’ll see, some markets are performing incredibly well. Yet, even the worst performing markets are not a drastic drop, showing that multifamily investing continues to be incredibly resilient, even in a pandemic.
Top 5 Real Estate Markets with the Highest Total Returns in 2020:
5. Charlotte, NC
- Total Annual Returns: 4.6%
- Major Industries: Advanced Manufacturing, Distribution, Banking, Financial Services
- Percentage of the Population that Rents: 34.57%
- Average Rent: $1,276
4. Denver, CO
- Total Annual Returns: 5.0%
- Major Industries: Aerospace, Energy, Financial Services, Telecommunications
- Percentage of the Population that Rents: 35.74%
- Average Rent: $1,635
3. Orlando, FL
- Total Annual Returns: 5.2%
- Major Industries: Technology, Aviation & Aerospace, Film & TV Production, Manufacturing
- Percentage of the Population that Rents: 38.09%
- Average Rent: $1,391
2. Phoenix, AZ
- Total Annual Returns: 9.2%
- Major Industries: Agriculture, Oil & Gas, Construction, Manufacturing
- Percentage of the Population that Rents: 35.45%
- Average Rent: $1,175
1. Salt Lake City, UT
- Total Annual Returns: 11.6%
- Major Industries: Educational Services, Healthcare & Social Assistance, Retail Trade
- Percentage of the Population that Rents: 32.73%
- Average Rent: $1,253
Bottom 5 Real Estate Markets with the Lowest Total Returns in 2020
5. San Francisco, CA
- Total Annual Returns: 0.4%
- Major Industries: Tourism, Technology, Financial Services
- Percentage of the Population that Rents: 45.97%
- Average Rent: $3,111
4. Portland, OR
- Total Annual Returns: 0.4%
- Major Industries: Technology, Manufacturing, Recreation
- Percentage of the Population that Rents: 38.21%
- Average Rent: $1,493
3. Houston, TX
- Total Annual Returns: - 0.5%
- Major Industries: Aerospace & Aviation, Advanced Manufacturing, Energy
- Percentage of the Population that Rents: 39.92%
- Average Rent: $1,106
2. New York, NY
- Total Annual Returns: - 0.7%
- Major Industries: Finance, Trade, Healthcare
- Percentage of the Population that Rents: 46.48%
- Average Rent: $3,790
1. Chicago, IL
- Total Annual Returns: - 1.5 %
- Major Industries: Financial Services, Engineering, Publishing
- Percentage of the Population that Rents: 35.55%
- Average Rent: $1,821
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.
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