So, let’s take a look at the most significant population gains and losses, alongside the average apartment rents and, just for the fun of the season we’re in, political affiliations, of the 5 cities that gained and lost the most in overall population:
Updated Migration Trends (2024)
Top Gaining Cities:
#1: Austin, Texas
- Population Growth: +1.5% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $1,788 per month
- Average Price Per Unit (2023, All Classes): $238,000
- Political Affiliation: Blue
Austin's market has cooled with a significant increase in vacancy rates due to new supply. However, the city's strong population growth and future demand prospects make it a key area for long-term investment.
#2: Tampa, Florida
- Population Growth: +0.8% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $2,144 per month
- Average Price Per Unit (2024, All Classes): Around $210,000
- Political Affiliation: Red
Tampa continues to attract investment with ongoing population growth, making it a hotspot for multifamily investments.
#3: Orlando, Florida
- Population Growth: +0.8% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $1,915 per month
- Average Price Per Unit (2024, All Classes): Approximately $200,000
- Political Affiliation: Blue
Orlando remains a strong market with continued demand driven by its thriving tourism and service industries.
#4: Charlotte, North Carolina
- Population Growth: +0.7% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $1,721 per month
- Average Price Per Unit (2024, All Classes): $180,000 to $200,000
- Political Affiliation: Blue
Charlotte's growing economy and population make it an attractive market for multifamily investments, with competitive pricing per unit compared to other major cities.
#5: Nashville, Tennessee
- Population Growth: +0.6% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $1,759 per month
- Average Price Per Unit (2023, All Classes): $218,000 to $255,000
- Political Affiliation: Red
Nashville has seen a significant amount of construction, with a strong future demand expected due to its rapid population growth. However, the market has recently experienced an increase in vacancy rates.
Top Losing Cities:
#1: San Francisco, California
- Population Decline: -1.1% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $3,695 per month
- Average Price Per Unit (2024, All Classes): $296,243
- Political Affiliation: Blue
San Francisco's multifamily market remains expensive, though prices have softened due to economic uncertainties and shifts in the tech industry.
#2: New York, New York
- Population Decline: -1.2% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $4,265 per month
- Average Price Per Unit (2024, All Classes): Approximately $300,000
- Political Affiliation: Blue
New York's multifamily market is among the tightest in the U.S., with vacancy rates at historic lows, driving up per-unit prices despite a recent slowdown in sales volume.
#3: Los Angeles, California
- Population Decline: -0.9% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $2,719 per month
- Average Price Per Unit (2023, All Classes): $220,000 - $350,000
- Political Affiliation: Blue
These figures reflect the broader trends in the Los Angeles multifamily market, which has seen a decrease in prices due to various economic factors but still remains robust due to the city's significant rental demand, despite the loss of population.
#4: Chicago, Illinois
- Population Decline: -0.7% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $2,057 per month
- Average Price Per Unit (2024, All Classes): $230,000
- Political Affiliation: Blue
Chicago has seen stable pricing despite slow population growth, supported by demand in the urban core.
#5: Boston, Massachusetts
- Population Decline: -0.6% (Q1 2022 - Q1 2023)
- Average Apartment Rent: $3,752 per month
- Average Price Per Unit (2024, All Classes): $290,000
- Political Affiliation: Blue
Boston remains one of the country's tightest markets, with a high demand for luxury apartments, particularly in Intown Boston and surrounding areas.
Final Thoughts
The average prices per unit generally reflects the entire market for multifamily properties, encompassing various asset classes, including Class A, B, and C. However, specific values can vary depending on the class of the property.
- Class A properties typically command higher per-unit prices due to their premium locations, newer construction, and top-tier amenities. These are often found in high-demand urban centers.
- Class B properties tend to have lower per-unit prices compared to Class A, as they are usually older buildings with fewer amenities but still located in desirable areas. They often appeal to middle-income tenants.
- Class C properties have the lowest per-unit prices. These are usually older buildings in less desirable locations and may require more maintenance.
In markets like San Francisco and New York, the averages likely skew higher due to a greater proportion of Class A properties, which dominate those markets. In contrast, markets like Nashville and Charlotte might include more Class B and C properties in their averages, reflecting the broader range of available inventory.
These trends highlight a continued population shift towards the Sun Belt and smaller to mid-sized cities with more affordable living conditions, while traditional economic centers in the Northeast and West Coast are experiencing declines. This data can guide your multifamily investment strategies by focusing on cities with growing populations and strong rental markets.
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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.
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