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What Makes a City One of the Best Places to Buy Multifamily Properties?

August 17th, 2022

What Makes a City One of the Best Places to Buy Multifamily PropertiesWhen investing in real estate, it pays to look at trends. World events significantly affect where people want to live. For example, they may want to leave the city after experiencing a pandemic and opt for suburbia. Shifts in industries sometimes force people to relocate. A seller’s market is incredible for an investor – but not so much for a renter as prices increase. Recognizing the different trends occurring almost simultaneously gives you the advantage to invest with eyes wide open. This is especially true when hunting for the best places to buy multifamily properties to enhance your portfolio.

4 Trends to Look for in Cities When Buying Multifamily Apartments

Finding the right city in which to invest is key. When you want to expand your portfolio, multifamily buildings offer many advantages, including low turnover and a higher return on investment. When you understand these four trends, you set yourself up for success:

  1. Growth in Population: It goes without saying—you need renters. Your occupancy rate will be low if a town, city, or area does not have people moving to it. Population growth fuels demand, giving you flexibility with rent prices.
  2. Job Growth: If your tenants cannot find jobs, they can’t pay rent. When people can find work, they tend to stay in one area. When you see job growth and people heading in to work, it’s a good sign that your vacancy rates will remain low.
  3. Price of Rent: You need to be aware of market rates and historic rents. Look for solid rent growth over the span of the past five years. It will give you an idea about future growth.
  4. New Development: Developers add value to cities. Their parks, office buildings, and other new buildings make an area enticing. This attracts new businesses, job seekers, and ultimately, the need for more multifamily housing.

A few things to keep in mind when analyzing a city for the four trends include:

Buy Multifamily Apartments with Confidence – Work with The Estes Group

Find the best cities to buy multifamily apartments in when you work with the experienced team at The Estes Group. We take pride in understanding the market and providing feedback based on your unique needs. Our client-centered approach focuses on your wealth-building goals. Not only can we help you purchase your next multifamily building, but we also offer many additional services, including property management, development, and investment, and acquisitions. Learn more about how we can serve you and your goals when you contact us today!

Call us at 601-362-9633 or contact us online to discuss your real estate goals and see how we can assist you on your path to financial success. We’re among the leading commercial property management companies in Mississippi, Louisiana, Alabama, and Tennessee.