Whether you are an experienced multifamily property investor or a novice, you need to know the ideal markets for 2022. As we move into the second quarter of the year, the apartment complex market in the U.S. is a seller’s market. As an investor, you need to review market statistics to determine where to invest your capital.

Many regions of the country are experiencing impressive spikes in demand, which was fueled during the pandemic. Home buyers throughout the U.S. are now paying premium prices for residential properties. Since the beginning of the pandemic, larger homes have seen an increase in sales. Prices for multifamily properties are also increasing. Yet with increasing occupancy rates, these properties are highly valued and lucrative real estate investments.

This trend began as many members of the workforce worked remotely while their children and teens attended virtual classes. With the entire family working and studying at home, larger living spaces were needed to accommodate all of this daily activity. Families seeking housing when relocating to more healthy job markets were willing to pay higher prices. Today, housing inventories continue to decrease as more home buyers pay higher prices for new residences.

Major Aspects of the Multifamily Property Market for 2022

Due to the extensive nationwide increases in housing demand, real estate prices are increasing at a more rapid pace than inflation. As a result, many former home owners are now choosing to rent living spaces. This trend has made investing in multi-unit buildings and complexes an attractive, profitable choice.

There are several key aspects to focus on when evaluating the best multifamily property market for 2022. Number one is population growth. Areas with a significant increase in population are the best markets to examine for lucrative apartment investing options. As the demand for rental units grows, you will have more large multi-unit properties to consider for potential investing projects. Other important factors to consider are rental costs, job expansion and property development activity.

Helpful Tips for Choosing the Ideal Multifamily Property for 2022 Investing

Before you select your multi-unit real estate for investing in 2022, consider the following tips from experts:

  • Population Increase. By choosing a real estate investing (REI) apartment complex market with strong, ongoing population growth, you are most likely to gain higher financial returns.

  • Rental Rates. A real estate market that has high rental rates is a good investment choice due to the growing demand for multifamily living spaces.

  • Job Market Growth. A market area with active job growth is likely to show a steady demand for multifamily units.

  • Property Development Trends. A market with increasing real estate development trends shows good potential for future investing in multi-unit buildings.

In all areas of apartment investing today, market timing is of the utmost importance. Some major urban areas have attractive potential for rental revenues, but lack sizable multi-unit inventories. In these locations, finding and closing a property investment deal that aligns with your profit potential requirements can be quite difficult. It is essential to study these markets carefully before investing.

Top Choices for Multifamily Investing Markets in 2022

The top-rated locations for investing in multifamily real estate during 2022 include the following cities:

Houston, Texas

As a city of seven million residents, Houston has high potential for profitable apartment investing opportunities. It is number five on the list of Texas metropolitan areas, and 53 Fortune 1000 companies have headquarters in Houston. The population expansion in this city is more than double the rate that many cities across the U.S. are experiencing.

Attractive employment opportunities are plentiful in Houston, and one in every ten job positions is in the oil engineering or geology industries. This metropolitan hub also offers a lower cost-of-living that some other major cities in the U.S., such as New York and Los Angeles. Houston currently has extensive activity in its real estate market, which is attractive to multifamily property investors.

Las Vegas, Nevada

Las Vegas is a city that has experienced various economic extremes over the years. Although it has not drawn as many major media headlines as some other cities, Vegas bounced back rather strongly after the serious real estate crash of the Great Recession of 2007 to 2009. Today, the multifamily real estate market in Las Vegas is solid and reliable for property investing. During 2019, the property market in this city was actually the most active in the U.S.

Today, the Las Vegas REI investing potential for large apartment complexes is excellent with ever-increasing new opportunities. With a highly valued business environment, the city’s steady and growing economy now supports strongly positive REI market trends throughout 2022.

Las Vegas is also the home of many new startup companies, which also bolster and implement additional growth in the property investment markets. S&P reports reveal that in 2018, Vegas showed an increase of 13 percent in housing values, the highest percentage rise across the country. The rental properties investing market is now booming in this city.

Tampa, Florida

Tampa, Florida, is a highly attractive metro area, and it is also one of the most desirable travel destinations in the U.S. today. Its population is upwards of 4 million residents, and there are many real estate developments available for investing opportunities. If fact, Tampa was recently deemed one of the most profitable multifamily investing markets in the country.

In the Tampa housing market, prices are relatively low, and many properties are predicted to appreciate considerably in the near future. Across Tampa’s central area, less than two months of multi-unit properties are available. This is a drop of approximately 21.4 percent from last year’s percentage.

A balanced real estate market is the major reason for rising housing prices throughout the city. With 5.5 months of stock available, the market does not favor either buyers or sellers. Yet a drop below 5.5 months worth of housing inventory triggers a seller’s market.

Dallas, Texas

A large volume of housing inventories is open to investors in Dallas, Texas, today. Currently, the rates for rental properties are high in relation to property prices. As a result, this city is an ideal choice for multifamily property investors. With an abundance of properties and renters, occupancy rates are relatively steady and high.

Since the city offers a versatile business community and economy, the Dallas apartment investing market provides profitable opportunities. Each day, 340 individuals move to Dallas-Fort Worth from a wide variety of locations. These newcomers are seeking lower-cost housing, which Dallas offers.

Yet rental rates have increased by 14 percent over the past few years. This makes the city a booming market for multi-unit property investing. Here you can definitely make profits from rental buildings. The Dallas metropolitan area is expected to offer soon as many as 20,000 new homes and apartments for investing opportunities.

Atlanta, Georgia

Another great place to invest in apartment properties is Atlanta, Georgia. Savvy investors know that there is a high demand for housing units in this city. It is driven by a healthy growth in population that equaled over 14 percent during the past ten years. Atlanta is currently a major center for lucrative REI activity.

With this steady and significant growth in population numbers and also extensive job growth, this thriving metropolis offers a highly profitable multifamily investing market. Atlanta is now considered to be a city with excellent real estate investing opportunities over the long-term. Many property investing experts give this city high rankings as a superior location for multi-unit investments.

Boise, Idaho

Boise, Idaho, has maintained its ranking as one of the top-caliber areas for long-term property investing in the U.S. for many years. Due to the balancing act between available housing and demand in the city, home prices continue to increase. For this reason, today is an excellent time to invest in apartment properties throughout Boise.

Realtor gives this city the number one ranking for housing property growth across the country. A growth in homes is predicted to equal 8 percent or more this year, and there actually is no reason for not investing in the city’s active market of multifamily properties.

A record-breaking low 30-year fixed-mortgage rate continues to strengthen Boise as an ideal market for apartment investing. Although many people are considering selling their homes, or have already done so, they are seeking new residences in multi-unit buildings and complexes.

The pandemic definitely did not weaken the property investing market. There are attractive new multi-unit buildings and developments near hospitals and schools here, which are traditionally viewed as “safe” and smart property investments.

Concluding Thoughts

Multifamily real estate is a leading choice for lucrative long-term investing opportunities today. By performing some basic due diligence to discover the top investing markets and options in the best city locations across the U.S., you can build a solid REI portfolio of profitable apartment properties.

By taking time to carefully evaluate the leading multi-unit markets and individual properties, you can focus on the most profitable buildings and complexes. Always consider your own financial situation before investing in these properties.

By understanding your financial capabilities and limits, you can select your ideal multifamily properties in the best locales to become a highly successful investor in multi-unit real estate. The sky is the limit for savvy, well-informed and sensible pilots to REI success.