Following the Trends, Multifamily Investors Look to Smaller Metro Areas

For people who are trying to make money in real estate, multifamily investing is an integral part of any portfolio. Although the past year has been a tumultuous one for the nation, with the pandemic changing the way Americans shopped, worked, and lived, the trends for multifamily investing have held steady. One trend in particular has been amplified because of the events of the past 12 months: a shift from the largest metros — New York, L.A., and San Francisco — to smaller, less crowded cities. Over the last five years, investment into non-major markets has increased 13.9%. Multifamily investors are focusing their money on smaller markets in order to see a significant return on their investments. Aside from the fact that there are more metros to choose from, and therefore more quality investment opportunities, investors are beginning to realize that there is more value to be found in smaller markets compared to the largest cities.

Smaller Metro Areas Targeted

When thinking about multifamily investing, many people achieved success in small markets outside of major cities. Globe St. reported that “75.8% of multifamily investment happened outside of major metros last year, according to new research from Newmark.” That percentage is a key to understanding how smaller metro areas were…