10 Cities That Multifamily Investors Should Love

New York City is the top metro for multifamily investing this year, as high housing demand and a relatively stable rental market buoy the sector there.

According to Crexi data, asking prices for NYC multifamily properties have gone up 13% so far year over year, with average occupancy levels climbing to approach 79.1% on average versus 74% in 2021. In its ranking of the top 10 cities for multifamily investment, Crexi notes that the city is “known as a city of renters” where 67% of households rent rather than own while rents have increased 27% year-over-year, “offering a predictable rental income stream that multifamily investors seek.”

Raleigh-Durham is #2 on the list, pushed ahead by a population increase of 2.3% annually and 2.6% employment growth over the same period. Median rents in the metro are more than $1500 per month and nearly half of all households are renter-occupied. Per Crexi comps data, Raleigh multifamily has transacted at a median $221 per square foot closing price, up from $193 per square foot overall in 2021.

Nashville, where more than 40% of households are renters, comes in third. Annual rents in Music City have grown 9% year over year and 2-bedroom units nab median rent of $1,845 per month. The occupancy rate of new listings added in 2022 on Crexi jumped to over 84%, up from 78.4% in 2021.

Charlotte clocks in at #4, with Crexi data reporting a 11.9% increase in average asking prices in 2022 compared to the previous year and occupancy at a 86% average. West Palm Beach is #5, with $609 million in multifamily value closed on Crexi in 2022, following a 2021 total valuation of $665 million. Median asking prices for multifamily also rose from $185 in 2021 to $212 per square foot year-over-year.

Number-six Charleston posted year-over-year rent growth of 27% in 2022, among the highest in the country, and the median closed price per square foot for multifamily properties there rose from $219 in 2021 to $256 in 2022. And next comes San Diego, which Crexi says “might be the best city in coastal California for apartment building investments.”  The median rent for a 2-bedroom apartment in San Diego is $3,195 and has increased by 10% year over year. On Crexi, more than $2.95 billion of multifamily property in San Diego transacted in 2021, with another $2.01 billion sold in 2022.

Boston, Denver, and Greenville round out the top 10.