With investment activity set to rise in the multifamily market as interest rates have begun falling, investors are searching for the best locations to deploy capital.

According to the Arbor-Chandan 2024 Multifamily Opportunity Matrix, Nashville, Phoenix and Austin are proving to be the top markets for multifamily investment with high rankings in affordability, population growth and climate. Affordable Midwest markets also performed well in the 2024 ranking, while many of the country's largest cities finished lower.

Nashville's No. 1 rating is due to its competitive tax climate, ability to attract renters from other metro areas, vibrant culture and bustling economy. The Tennessee capital saw its population grow 1.5% in 2023, about three times faster than the national average. The market benefits from the healthcare, technology tourism sectors, and its labor market had the lowest unemployment rate of all the 50 largest metros through July at 2.5%.