The real estate multi-family index takes into account a number of factors when ranking the top markets which bear watching. Vacancy rates, employment rates, new construction, and rents and investments are all factored into the process, and what emerges is a listing of those markets which investors should pay close attention to. Here are the top five markets identified for the upcoming year.
With more than 12,000 units in various stages of construction, the Seattle-Tacoma market has employment growth of nearly 3%, while rents are increasing at nearly that same 3% rate. The vacancy rate is low, and this same region was last year’s #1 multi-family market in the country.
Last year’s #2 multi-family market, Los Angeles will have nearly 15,000 new units under construction by 2020, and that will be needed to support its burgeoning population. Employment growth might be relatively slow, but vacancies are low and rental prices have increased steadily, at a 4% rate.
New York City
This market breaks into the Top 5 after having been #7 last year. It features a 3.4% rental increase rate, with modest employment growth at a little over 1%. But where NYC really shines is in the area of new construction, with 20,000 new units being erected for the coming year.
This year’s #2 multi-family market was last year’s #4 contender, primarily on the strength of its huge 4.3% rental increase rate. Employment growth is a modest 1.5%, and rental increases are enjoying an impressive 4.3% increase across the board. New construction is not overwhelming at 3,200 units, but other factors increase its ranking.
A whopping 5.7% rental increase rate is one of the biggest factors responsible for making this market the 1 market to watch in 2020. Construction is moderate at nearly 6,000 new units, and employment growth is steady at 1.5%, but there is a low vacancy rate and the market in this region seems poised for further growth.
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