You probably heard that when it comes to real estate, location is one of the most important factors. What makes a market a solid one for real estate? The answer is complex, but job growth is one of the main factors that make a market a strong market (in addition, I also look at population growth and rent growth as well).
In the past decade, the U.S. economy has been steadily growing. One of the signs for solid growth has been stable employment. Over the past 5 years, the employment rate has increased by 7%.
Employment growth is related to population growth because people move to areas where they can find more employment opportunities. Hence, a market with a solid employment base will almost always attract people, whom many can be potential tenants.
Here’s a list of the top 10 markets with the highest job growth in the country:
City #10: Gainesville, GA
- Jobs added in the past 5 years: +16,111
- % of jobs added in the past 5 years: 19.4%
- Employment rate: 97.2%
City #9: Fort Collins, CO
- Jobs added in the past 5 years: +33,350
- % of jobs added in the past 5 years: 19.6%
- Employment rate: 98%
City #8: Phoenix-Mesa-Scottsdale, AZ
- Jobs added in the past 5 years: +388,901 jobs
- % of jobs added in the past 5 years: 19.7%
- Employment rate: 96%
City #7: Boise City, ID
- Jobs added in the past 5 years: +60,126 jobs
- % of jobs added in the past 5 years: 19.9%
- Employment rate: 97.7%
City #6: Lake Charles, LA
- Jobs added in the past 5 years: +18,274 jobs
- % of jobs added in the past 5 years: 20%
- Employment rate: 96.7%
City #5: Provo-Orem, UT
- Jobs added in the past 5 years: +51,042 jobs
- % of jobs added in the past 5 years: 20.6%
- Employment rate: 97.5%
City #4: Nashville-Davidson–Murfreesboro–Franklin, TN
- Jobs added in the past 5 years: +193,594 jobs
- % of jobs added in the past 5 years: 22.4%
- Employment rate: 97.6%
City #3: Reno, NV
- Jobs added in the past 5 years: +49,382 jobs
- % of jobs added in the past 5 years: 23.9%
- Employment rate: 97%
City #2: Bend-Redmond, OR
- Jobs added in the past 5 years: +18,542 jobs
- % of jobs added in the past 5 years: 24.9%
- Employment rate: 96.7%
City #1: St. George, UT
- Jobs added in the past 5 years: +15,163 jobs
- % of jobs added in the past 5 years: 25.7%
- Employment rate: 97.1%
Summary
While purchasing a local multifamily property has its advantages in that you already know the market, it pays to look at out of state properties for the reasons outlined above. States without rent control or laws that favor tenants are advantageous to landlords. And markets that have good population growth, job growth and rent growth are markets where you should be investing your money. After you choose a market, just make sure you outline your investment criteria, build a team and start analyzing your deals. It will be a journey, but a fun one.
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About Ellie Perlman
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.
