Sunbelt States Primed for Multifamily Investment
Population growth has made the sunbelt states among the most popular markets for multifamily investment this year. Arizona, Nevada, Texas, Florida and Georgia are the states with the strongest population growth, and they have seen strong multifamily investment activity as a result. Investors are targeting value-add deals in these markets.
“There has been a shift in investor sentiment away from colder climates towards the sunbelt and the coasts, leading all of the top 10 cities for population growth to be scattered between Arizona, Nevada, Texas, Florida and Georgia,” Chris Hanson, founding principal of the Hanson Capital, tells GlobeSt.com. “I think there’s still opportunity in value-add investment where you buy a class-C property in a class-B area and then improve the property to modern interiors and amenities that creates value for the investor. This works with class-B property in class-A areas although generally not as well because it competes with new construction but a variation of this model is something we’ve been doing for 11 years now.”