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Dallas, Austin and Houston among the best cities for multifamily investment

by Emily Marek

Three Texas metros have been named among the best cities in the U.S. for multifamily real estate investment in the first half of 2023, according to CONTI Capital.

The real estate investment company’s latest report of the top 10 markets for multifamily investment suggests that Dallas-Fort Worth will be one of the top areas in the country to invest in multifamily housing in the first half of the year. As job growth and employment increase around Dallas, the demand for housing continues to grow. Additionally, employment growth in Dallas spans a wide range of employment sectors including health, education, finance and technology, meaning the metro’s workforce is poised for long-term resilience.

Dallas’ demographics also outperform that of every other metro analyzed in CONTI’s report. The DFW metro area remains the top market in the country for population growth, with the overall population rising by approximately 122,000 residents per year.

Ranking two spots down at No. 3 is Austin, which has grown exponentially in the past several years thanks to the tech boom in “Silicon Hills.” In addition to jobs in the technology sector, Austin’s workforce includes large amounts of government employees, as well as employees of the University of Texas. The metro’s thriving economy and low unemployment rates mean Austin’s demand for housing continues to increase.

Houston falls a bit further down the list at No. 7. Using the Hachman Index, CONTI determined that Houston is actually the metro with the greatest rate of industry diversification in the past several years. While oil and gas remain the largest industries in Houston, technology and healthcare have also seen major growth in recent years. This industry growth is one of the main indicators of an increased need for housing.

Houston also ranks particularly high in the rate of household formation, thanks in part to the large millennial population in the city moving out of their family homes or starting families of their own. CONTI reports that over 34,000 new households were formed in Houston in 2022, making it one of the leading areas in the country for multifamily investment in 2023.

Also on CONTI’s list are Atlanta, Georgia (No. 2); Charlotte, North Carolina (No. 4); Orlando, Florida (No. 5); Tampa, Florida (No. 6); Nashville, Tennessee (No. 8); Raleigh-Durham, North Carolina (No. 9); and Phoenix, Arizona (No. 10).

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