You know me. I always find opportunities when people are complaining and thinking small. So while most people fear inflation, I use it to look for top multifamily markets to potentially create wealth…
And I’m not kidding when I tell you – I’ve been seeing a TON of them while shooting my new TV show, “Real Estate King”.
So I’m excited to tell you more about:
- How to assess the MOST competitive rental markets in the U.S.
- The TOP 20 multifamily markets I would invest in this year
- What YOU can do today to educate yourself further and find life-changing deals
Why You NEED to Know the Market
Last year, I got a phone call from a seller saying, “Hey man, can you buy this property in Fargo, North Dakota?
It’s a brand new building and it’s going to pay you 25% a year.”
“Sounds like I’ll have all my money back in 4 years. That’s cool,” I told him. “But you’ll never be able to sell the property.”
No offense to any of you out there in Fargo, but as soon as they pull the gas jobs… that place will be empty again.
This is why you HAVE to know where the great markets and assets are.
Always do your own research and due diligence, and don’t fall for any old get-rich-quick scheme that comes your way.
How to Find HIGH-QUALITY ASSETS
When looking for GREAT markets to invest in, some criteria I would look at include:
- How many days were rentals typically vacant in this market? The fewer, the better.
- What are the typical occupancy rates in this market? You’re looking for high percentages here, like 97%.
- On average, how many prospective renters are competing for one apartment unit in this market? More competition = higher demand and more potential tenants for you to work with.
- What is the typical percentage of renters renewing their leases in this market? In other words, how high is the lease renewal rate?
- What percentage of apartments in the city are newly completed apartments? And even with newly built apartments, is the market keeping up with renter demand?
Top 20 Multifamily Markets of 2022
According to RentCafe, these are the top most competitive multifamily markets out there as of July 2022, ranked in order of competitiveness:
|Rank||Location||Average Vacant Days||Occupancy Rate||Prospective Renters||Lease Renewal Rate||Share of New Apartments|
|1||Miami-Dade County, Florida||27||97.6%||31||75%||1.8%|
|4||South West Florida, Florida||30||96.8%||20||72%||0.9%|
|5||North Jersey, New Jersey||35||97.1%||21||74%||0.9%|
|6||Grand Rapids, Michigan||32||96.8%||18||69%||0.3%|
|7||Rochester, New York||39||96.5%||18||74%||0.2%|
|8||Central Jersey, New Jersey||45||97.1%||17||83%||0.5%|
|10||Broward County, Florida||36||96.4%||19||69%||0.5%|
|11||Orange County, California||31||97.5%||20||61%||0.2%|
|14||Central Valley, California||33||97.6%||16||49%||0.0%|
|15||Suburban Chicago, Illinois||39||95.8%||18||68%||0.3%|
|16||San Diego, California||31||97.2%||24||52%||0.7%|
|17||Suburban Philadelphia, Philadelphia||42||95.8%||14||78%||0.3%|
|18||Eastern Virginia, Virginia||30||96.0%||16||62%||0.5%|
|19||Inland Empire, California||37||97.0%||21||53%||0.1%|
|20||Eastern Los Angeles County, California||35||97.5%||27||41%||0.7%|
There Are Deals in Your Backyard Right Now
As I like to say – there are deals to be had in every backyard, in every stage of the economic cycle.
Here’s how you can do more market research on your own for free:
- Check out FREE websites for property listings to get a sense of rents, vacancy rates, and other useful information about your target market/location. Try Loopnet.com and Hotpads.com.
- Look at HISTORICAL data, such as historical rent values by zip code or even rent values by number of bedrooms in different markets across the country. You can use sites such as Zillow and Zumper.
- Read REPORTS published by big brokerage firms like CBRE, JLL, and Cushman & Wakefield. You can search their websites for free quarterly, semi-annual, or annual market reports for multifamily.
This should inspire you to keep your fingers on the pulse of your ideal markets… and never stop looking for your first (or next) life-changing deal.
Remember, there is no failure unless you quit.
* Disclaimer: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.