There continues to be strong holdouts and increasing positive trends in multifamily investing. Even though several major markets saw consistent declines in rent rates and employment, other markets gained from this and produced solid growth trends throughout all of 2020. This indicator, and continued stability of multifamily as an investment vehicle, is being viewed as it always has historically – a reliable investment. Recently, CBRE even released a report forecasting “a return to pre-COVID vacancy levels and a 6% increase in net effective rents” for 2021, along with an anticipated “full market recovery occurring in early 2022”.
If you weren’t already confident about multifamily investing, this is a significant insight to help you in understanding why these investments are a in a class of their own. Unlike retail or office space, multifamily addresses fundamental needs, and this is why it has continued to perform well in comparison to all other assets even throughout a global pandemic. It is one of the safest investments that can be made, respectively.
Looking towards 2021, Yardi Matrix’ also highlighted supporting trends to CBRE’s forecast. The recent National Multifamily Report of December 2020 shows detailed market analysis of year-over-year rent growth from December 2019 – December 2020, as well as forecasted rent growths into 2021. Positive trends are seen in multiple markets; those showing losses are most directly impacted from unemployment during the pandemic, that in turn resulted in increased migrations of tenants exiting more expensive primary markets and moving instead to secondary and tertiary markets with more affordable costs of living. Nonetheless, the fact remains that multifamily investing made it through 2020 with growth and positive gains and will continue to do so into 2021.
Here are the Top 15 Forecasted Markets for Rent Growth in 2021:
15. Charlotte, NC
- Forecasted Rent Growth (YE 2021): 2.6%
- Current Unemployment Rate: 6.3%
- Average Price of an Apartment: $1,284
- YoY Rent Growth (2019-2020): 2.2%
14. Baltimore, MD
- Forecasted Rent Growth (YE 2021): 2.6%
- Current Unemployment Rate: 7.9%
- Average Cost of an Apartment: $1,312
- YoY Rent Growth (2019-2020): 3.3%
13. Houston, TX
- Forecasted Rent Growth (YE 2021): 2.7%
- Current Unemployment Rate: 7.9%
- Average Cost of an Apartment: $1,102
- YoY Rent Growth (2019-2020): -1/9%
12. Philadelphia, PA
- Forecasted Rent Growth (YE 2021): 2.8%
- Current Unemployment Rate: 8.3%
- Average Cost of an Apartment: $1,660
- YoY Rent Growth (2019-2020): 2.4%
11. Orange County, CA
- Forecasted Rent Growth (YE 2021): 2.9%
- Current Unemployment Rate: 7.4%
- Average Cost of an Apartment: $2,086
- YoY Rent Growth (2019-2020): -0.5%
10. Raleigh, NC
- Forecasted Rent Growth (YE 2021): 3.0%
- Current Unemployment Rate: 5.7%
- Average Cost of an Apartment: $1,250
- YoY Rent Growth (2019-2020): 0.0%
9. Nashville, TN
- Forecasted Rent Growth (YE 2021): 3.1%
- Current Unemployment Rate: 5.2%
- Average Cost of an Apartment: $1,399
- YoY Rent Growth (2019-2020): -1.5%
8. Inland Empire (Riverside-San Bernardino-Ontario), CA
- Forecasted Rent Growth (YE 2021): 3.2%
- Current Unemployment Rate: 9.1%
- Average Cost of an Apartment: $1,688
- YoY Rent Growth (2019-2020): 7.3%
7. Atlanta, GA
- Forecasted Rent Growth (YE 2021): 3.3%
- Current Unemployment Rate: 7.0%
- Average Cost of an Apartment: $1,517
- YoY Rent Growth (2019-2020): 3.0%
6. Tampa, FL
- Forecasted Rent Growth (YE 2021): 3.5%
- Current Unemployment Rate: 6.0%
- Average Cost of an Apartment: $1,395
- YoY Rent Growth (2019-2020): 3.9%
5. Austin, TX
- Forecasted Rent Growth (YE 2021): 3.6%
- Current Unemployment Rate: 4.9%
- Average Cost of an Apartment: $1,378
- YoY Rent Growth (2019-2020): -3.6%
4. Las Vegas, NV
- Forecasted Rent Growth (YE 2021): 3.8%
- Current Unemployment Rate: 10.3%
- Average Cost of an Apartment: $1,155
- YoY Rent Growth (2019-2020): 3.8%
3. Phoenix, AZ
- Forecasted Rent Growth (YE 2021): 3.9%
- Current Unemployment Rate: 7.6%
- Average Cost of an Apartment: $1,191
- YoY Rent Growth (2019-2020): 4.6%
2. Sacramento, CA
- Forecasted Rent Growth (YE 2021): 4.1%
- Current Unemployment Rate: 8.5%
- Average Cost of an Apartment: $1,529
- YoY Rent Growth (2019-2020): 6.1%
1. Indianapolis, IN
- Forecasted Rent Growth (YE 2021): 4.4%
- Current Unemployment Rate: 5.2%
- Average Cost of an Apartment: $932
- YoY Rent Growth (2019-2020): 3.5%
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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.
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