Key drivers boosting these top multifamily markets
As designers and marketers, what drives human behavior fascinates us. Understanding that human behavior helps explain why 2022’s top multifamily markets continue to thrive.
The human element
As Holdfolio reports, multifamily development thrives in areas with strong population growth and healthy economic indicators:
“A market with strong population growth is likely to have a higher demand for rental units, which means good investment potential. Other important factors include job growth, rent prices, and development activity.”
So, why do people flock to some cities and towns and not others? Jobs and economic opportunity, of course, but there’s more to it than that. In the age of remote work, people have started moving to locations with a lower cost of living, for example.
And let’s not forget the weather! GlobeSt reports:
“High rates of rent growth, bolstered by robust in-migration, distinguish many of the top-performing metros in the Index, including Phoenix (#5), Salt Lake City (#6) and Austin (#7). Many coastal residents are moving to these metros for lower-cost living arrangements.
Besides that, Florida dominates the top 10 for similar demographic reasons. Individuals, predominantly from the Northeast and Midwest, are relocating to the warmer climates of Fort Lauderdale (#3), West Palm Beach (#4) and Tampa (#8).”
If you wonder why Florida attracts so many new residents, check out this top 15 list. Disney, fresh food, beaches and no state income tax. They don’t mention the margaritas, but let’s go ahead and add those to the list. Lifestyle meets affordability. Cheers!
The community element
The culture of a town or region can make a huge difference in its attractiveness to new residents. Cities like Austin and Raleigh-Durham consistently rank high on multifamily investment lists and culture plays a big part of that. These cities and others have strong reputations for unique, diverse and thriving cultures. Music, food, friendliness and a laid-back vibe tend to permeate the most livable destinations.
Others that rank high on the list might surprise some. Take Boise, Idaho, for example. It has placed on top multifamily investment lists for several years due to consistent rental demand. This writer sums up some of Boise’s cultural appeal:
“…a city with a dynamic downtown, a flourishing coffee scene, and a friendly, laid-back vibe. For millennials coming from large, expensive cities, Boise offers a better quality of life and dramatically lower living costs. Boise and other mid-size cities like Portland, Oregon, and Charlotte, North Carolina, are booming as millennials move away from bigger cities like San Francisco and New York because of skyrocketing housing costs…Boise’s safety, affordability, and burgeoning tech and creative scenes make it attractive to young families and individuals…”
Mmmm, coffee. And a “burgeoning creative scene” speaks straight to our hearts here at Apres. People might move to Boise (or any other top destination) for a job, but they stay for the people, the culture and the lifestyle.
The design and marketing element
Analyst firms and media outlets publish these lists each year, and their metrics rely largely on specific economic and industry data. Cap rates, vacancy rates, tax incentives … blah blah blah.
Not to make light, because investors need to care about the numbers, but we take a more humanistic view.
As designers and creators, we pay more attention to what drives a renter’s decision-making process. So, even if your city or region never make it into top 20 multifamily markets, you can take a cue from their appeal and apply it to your own branding and marketing.
For example:
- Is your city affordable?
- Does it offer diverse recreation and entertainment options?
- Do people eat and drink there? Even if it’s not known as a “foodie city,” think about its hidden culinary gems.
- Safety and security might appeal more to some people than flash and frenzy.
- Have you become a destination for something unique?
One “hidden gem” city, Greenville, South Carolina, has become known for its arts festivals. As Thrillist reports:
“The relatively cheap rent in Greenville has spawned one of the South’s fastest-growing arts scenes, which in turn has spurred the creation of festival after festival. Depending on when you visit, you might find yourself mingling with creative types at Artisphere, Euphoria, or Fall for Greenville. The neighborhood of West Greenville is an arts hub in and of itself, and throughout the city, you’ll find more than 95 public works of art, including glass-master Dale Chihuly’s striking Rose Crystal Tower.”
Wherever your location, you can find something to add flair and distinction to your multifamily marketing. If you remember the human and community elements, that will take you a long way toward connecting with potential new residents.
Ready to shake up your multifamily branding and marketing? Work with us to help make your community a sought-after destination.
