Demand for affordable housing is continuing to outpace supply—a problem that has been plaguing the country for years and one that Jonathan Needell, president and CIO of Kairos Investment Management Company doesn't imagine subsiding anytime soon. As a result, there is ample investment capital active in the affordable housing sector. To curb the competition, Kairos is focusing on domestic growth markets.

"At Kairos, one of our strategies is capitalizing on the supply/demand imbalance by identifying areas in domestic growth markets in which to invest and targeting multifamily assets in those areas," Needell tells GlobeSt.com. "By acquiring properties in domestic growth markets, we can more efficiently implement renovations and improvements that aim to raise the quality of affordable housing for residents."

Markets that fit the mold have supply constraints with below market rents and improving vaccine rates. "We carefully research and consider market conditions to identify areas offering great potential for investment that are often overlooked or disregarded by other investors," says Needell. "Our contrarian approach allows us to identify niche markets where we see growth opportunities."