New York Metropolis is the highest metro for multifamily investing this yr, as excessive housing demand and a comparatively secure rental market buoy the sector there.
In keeping with Crexi knowledge, asking costs for NYC multifamily properties have gone up 13% up to now yr over yr, with common occupancy ranges climbing to method 79.1% on common versus 74% in 2021. In its rating of the highest 10 cities for multifamily funding, Crexi notes that the town is “referred to as a metropolis of renters” the place 67% of households hire quite than personal whereas rents have elevated 27% year-over-year, “providing a predictable rental revenue stream that multifamily buyers search.”
Raleigh-Durham is #2 on the checklist, pushed forward by a inhabitants enhance of two.3% yearly and a couple of.6% employment development over the identical interval. Median rents within the metro are greater than $1500 per thirty days and practically half of all households are renter-occupied. Per Crexi comps knowledge, Raleigh multifamily has transacted at a median $221 per sq. foot closing value, up from $193 per sq. foot general in 2021.
Nashville, the place greater than 40% of households are renters, is available in third. Annual rents in Music Metropolis have grown 9% yr over yr and 2-bedroom items nab median hire of $1,845 per thirty days. The occupancy fee of latest listings added in 2022 on Crexi jumped to over 84%, up from 78.4% in 2021.
Charlotte clocks in at #4, with Crexi knowledge reporting a 11.9% enhance in common asking costs in 2022 in comparison with the earlier yr and occupancy at a 86% common. West Palm Seaside is #5, with $609 million in multifamily worth closed on Crexi in 2022, following a 2021 whole valuation of $665 million. Median asking costs for multifamily additionally rose from $185 in 2021 to $212 per sq. foot year-over-year.
Quantity-six Charleston posted year-over-year hire development of 27% in 2022, among the many highest within the nation, and the median closed value per sq. foot for multifamily properties there rose from $219 in 2021 to $256 in 2022. And subsequent comes San Diego, which Crexi says “may be the most effective metropolis in coastal California for condo constructing investments.” The median hire for a 2-bedroom condo in San Diego is $3,195 and has elevated by 10% yr over yr. On Crexi, greater than $2.95 billion of multifamily property in San Diego transacted in 2021, with one other $2.01 billion bought in 2022.
Boston, Denver, and Greenville spherical out the highest 10.
