As we continue to navigate through these recent economic changes, there’s been a multitude of speculation on what the impact will be on real estate investing. Granted, being a multifamily syndicator and investor myself, I am biased; yet, when it comes to real estate investing, multifamily continues to live up to its reputation of being one of the historically safest and most reliable asset classes there is.
According to the Newmark Knight Frank 1Q2020 US Multifamily Capital Markets Report, multifamily total returns averaged 5.10% in the last year. The key to capitalizing on this is selecting the strongest and highest performing markets. I personally focus on opportunities in Texas, Florida, and Georgia, where average returns can commonly range from 7%-9% or more. When a strategy for maximizing returns is effectively implemented, a multifamily investment can prove profitable even through economic shifts, as we are seeing in our current portfolio.
Which markets are leading the charge? Here are the top 10 markets in the last 12 months for returns on multifamily investments:
10. Seattle, WA
- Overall Population: 637,850
- Annual Total Return: 6.02%
- Average 2 BR Rent: $1,690
- Mean Income: $67,365
9. Palm Beach, FL
- Overall Population: 8,344
- Annual Total Return: 6.04%
- Average 2 BR Rent: $1,418
- Mean Income: $105,700
8. Minneapolis, MN
- Overall Population: 394,424
- Annual Total Return: 6.70%
- Average 2 BR Rent: $1,150
- Mean Income: $50,767
7. Atlanta, GA
- Overall Population: 440,641
- Annual Total Return: 6.80%
- Average 2 BR Rent: $1,190
- Mean Income: $46,439
6. Denver, CO
- Overall Population: 633,777
- Annual Total Return: 7.73%
- Average 2 BR Rent: $1,350
- Mean Income: $51,800
5. Charlotte, NC
- Overall Population: 774,807
- Annual Total Return: 8.07%
- Average 2 BR Rent: $1,140
- Mean Income: $53,274
4. Tampa, FL
- Overall Population: 348,934
- Annual Total Return: 8.24%
- Average 2 BR Rent: $1,280
- Mean Income: $43,740
3. Orlando, FL
- Overall Population: 250,224
- Annual Total Return: 8.54%
- Average 2 BR Rent: $1,280
- Mean Income: $41,901
2. Austin, TX
- Overall Population: $864,218
- Annual Total Return: 8.69%
- Average 2 BR Rent: $1,461
- Mean Income: $55,216
1. Phoenix, AZ
- Overall Population: 1,490,758
- Annual Total Return: 13.73%
- Average 2 BR Rent: $1,100
- Mean Income: $46,881
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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.
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.
