Not everyone is fleeing major metros during the pandemic. Remote office workers have largely driven the migration trend into the Sunbelt region. Essential workers, on the other hand, are staying put, helping to fuel strong fundamentals in affordable and workforce housing product. As a result, these housing segments have outperformed market-rate multifamily.

Avanath Capital Management, which closed its fourth fund last month with $760 million in capital commitments, is staying with its target demographic of renter-by-choice rather than following the investment trend into alternative markets. "We are in the top markets in the US, but we haven't gone to Salt Lake City or Boise," John R. Williams, president and CIO at Avanath, tells GlobeSt.com. "That is really a migration of people that can do that because they are renters by choice, not by necessity. Our group is renters by necessity. They probably couldn't duplicate their job and lifestyle in another market."

Through the pandemic, Avanath has enjoyed strong rent collections from its renter base, an indication that tenants aren't only staying in their current homes but also succeeding through the pandemic. "Of our 11,000 units, only 70 people applied for a payment plan or a deferment. That was way below what we thought. We worked with people on that, and other people were paying the rent because they were working," says Williams.