The Best Cities to Buy Multifamily Property in 2024

The multifamily sector faces challenges similar to other commercial properties, including increased mortgage rates affecting values and refinancing, escalating costs, and a potential dip in demand due to economic downturns.

However, the outlook for multifamily housing over the long term looks positive due to consistent demand drivers. Despite a slowdown post-pandemic, absorption remains robust. While nationwide occupancy rates have dipped from their peak, they remain high compared to historical averages.

If you’re considering entering the apartment investment space, you may wonder which markets are the best cities for multifamily investing. To help you decide, we’ve compiled a list of the top 10 cities to buy multifamily property in 2024, according to Emerging Trends in Real Estate 2024 from PwC and supplemental data from the Crexi platform. These cities offer a combination of strong economic fundamentals, growing populations, and favorable real estate investment conditions that make them ideal.

10 Top Cities for Multifamily Investing in 2024

Keep reading to learn more about each city’s market outlook and investment opportunities. All demographic information comes from CensusReporter.org and DataUSA.io, while median rent, occupancy rates, and rent growth statistics come from Zumper.com for 2-bedroom units, except where noted. Pricing and comps data come from Crexi Intelligence.

1. Jersey City

Jersey City is a dynamic urban hub across the Hudson River from Manhattan. It has a robust rental market due to its strategic location, offering easy access to New York City, and hosting a diverse population. The city’s ongoing growth and development initiatives ensure a steady influx of residents for multifamily property investors.

As with many major urban areas, Jersey City has more renters than homeowners, with renter-occupied households accounting for 70% of the occupied housing units. Median rents for a 2-bedroom unit are $3,950 per month, with nearly half of available units renting for between $2,500 and $4,000.

Crexi Intelligence Jersey City Multifamily Trends

For Sale (active)

  • Median asking price: $1.23 million

  • Price/SqFt: $277

  • Price/Unit: $268,000

  • Asking cap rate: 6.0%

  • Days on market: 114

  • Total listings on Crexi: 42

Sales Comps (past 12 months)

  • Median sold price: $660,000

  • Sold price/SqFt: $283

  • Sold price/unit: $300,000

  • Total sales volume: $337 million

  • Sold cap rate: 4.0%

  • Total SqFt sold: 848,000

  • Days on market (median): 114

2. Madison

Madison, Wisconsin, is a city characterized by its dual identity as a vibrant college town and state capital. It is home to the University of Wisconsin-Madison, which contributes significantly to the local rental market.

The population of Madison has soared by 17% since 2010, and the city is now home to over 272,900 people. The unemployment rate is 2.1%, lower than in Milwaukee and the state of Wisconsin. Median rents for a 2-bedroom place are $1,675 per month, with more than 50% of the households renting rather than owning.

Crexi Intelligence Madison Multifamily Trends

For Sale (active)

  • Median asking price: $2.6 million

  • Price/SqFt: $150

  • Asking cap rate: 7.3%

  • Days on market: 150

  • Total listings on Crexi: 8

Sales Comps (past 12 months)

  • Median sold price: $425,000

  • Sold price/SqFt: $124

  • Sold price/unit: $209,000

  • Total sales volume: $59.8 million

  • Sold cap rate: 5.8%

  • Total SqFt sold: 431,000

  • Days on Market (median): 44

3. Columbus

Columbus, Ohio’s capital city, is known for its diverse economy with employment opportunities across various sectors. With its consistent population growth and high quality of life, the city offers an array of amenities, educational facilities, and comprehensive government services.

Boasting a cost of living 10% lower than the national average, the population has increased by 1% over the past year, while median household incomes have soared by 6.7% over the same period. Median rents for a 2-bedroom apartment run $1,379 monthly, growing by 6% yearly.

Crexi Intelligence Columbus Multifamily Trends

For Sale (active)

  • Median asking price: $489,000

  • Price/SqFt: $158

  • Price/Unit: $148,000

  • Asking cap rate: 5.6%

  • Days on the market: 72

  • Total listings on Crexi: 152

Sales Comps (past 12 months)

  • Median sold price: $284,000

  • Sold price/SqFt: $114

  • Sold price/unit: $120,000

  • Total sales volume: $313 million

  • Sold cap rate: 8.1%

  • Total SqFt sold: 2.58 million

  • Days on market (median): 64

4. Knoxville

Knoxville’s diversified economy doesn’t hinge on a single employment sector, providing a stable foundation for multifamily real estate investors. The city is witnessing steady population growth and an evolving business landscape that’s continuously bringing new job opportunities to the region.

The employed population has increased by 0.7% year over year, while median household incomes have grown by 6.5%. The median age is 32.5, about 80% of the figure in Tennessee. Over 50% of the households are renter-occupied, with median rents running $1,590 per month for a 2-bedroom apartment.

Crexi Intelligence Knoxville Multifamily Trends

For Sale (active)

  • Median asking price: $2.39 million

  • Price/SqFt: $226

  • Price/Unit: $160,000

  • Asking cap rate: 6.0%

  • Days on market: 49

  • Total listings on Crexi: 26

Sales Comps (past 12 months)

  • Median sold price: $482,000

  • Sold price/SqFt: $356

  • Sold price/unit: $15,100

  • Total sales volume: $210 million

  • Sold cap rate: 8.7%

  • Total SqFt sold: 523,000

  • Days on market (median): 126

5. Pittsburgh

Pittsburgh’s commercial real estate market and economy strongly focus on services, medicine, higher education, tourism, and banking. The city has seen significant job growth over the past year, driving the unemployment down rate to just 3.0%. The city is also home to numerous universities and educational institutions while offering a high quality of life, all of which contribute to an attractive environment for multifamily property investment.

The median rent for a 2-bedroom unit is $1,456 per month. The most expensive neighborhoods include Crawford Roberts Hill and Downtown Pittsburgh, where rents average $2,000 or more. Mount Washington and Squirrel Hill South are among the most affordable places where renters can find apartments for less than the median rent.

Crexi Intelligence Pittsburgh Multifamily Trends

For Sale (active)

  • Median asking price: $425,000

  • Price/SqFt: $159

  • Price/Unit: $109,000

  • Asking cap rate: 6.7%

  • Days on market: 131

  • Total listings on Crexi: 47

Sales Comps (past 12 months)

  • Median sold price: $235,000

  • Sold price/SqFt: $98

  • Sold price/unit: $105,000

  • Total sales volume: $299 million

  • Sold cap rate: 7.2%

  • Total SqFt sold: 1.5 million

  • Days on market (median): 35

6. Louisville

Louisville’s commercial real estate market is the largest in Kentucky, serving a vibrant economy with a wide array of sectors, with construction and manufacturing reporting the most robust job growth. The city is home to the University of Louisville, known for the famous Kentucky Derby, and is the birthplace of Muhammad Ali.

Over 35% of residents hold a bachelor’s degree or higher, a rate that’s about 25% greater than in the state. Both per capita and median household incomes are higher than in Kentucky. Median rents for a 2-bedroom place currently run $1,160 per month.

Crexi Intelligence Louisville Multifamily Trends

For Sale (active)

  • Median asking price: $999,000

  • Price/SqFt: $116

  • Price/Unit: $95,400

  • Asking cap rate: 6.0%

  • Days on market: 154

  • Total listings on Crexi: 47

Sales Comps (past 12 months)

  • Median sold price: $299,000

  • Sold price/SqFt: $94

  • Sold price/unit: $78,100

  • Total sales volume: $142 million

  • Sold cap rate: 7.2%

  • Total SqFt sold: 1.44 million

  • Days on market (median): 67

7. New York-Brooklyn

New York City’s commercial real estate market comprises properties in its five boroughs – the Bronx, Brooklyn, Manhattan, Queens, and Staten Island. The city itself is home to over 8.3 million people, representing a melting pot of cultures, with people from all over the world coming to live and work there. NYC is also a significant financial center, with Wall Street located in Lower Manhattan.

Multifamily properties are a good investment in New York City because there is always a high demand for housing. New York City’s multifamily market is also very stable, even during economic downturns.

Known as a city of renters, 67% of households in the Big Apple rent rather than own. Rents have increased 12% year-over-year, offering a predictable rental income stream that any real estate investor would seek. Median rents for 2-bedroom units are running at $4,995 per month.

Crexi Intelligence Brooklyn Multifamily Trends

For Sale (active)

  • Median asking price: $2.56 million

  • Price/SqFt: $490

  • Price/Unit: $391,000

  • Asking cap rate: 5.9%

  • Days on market: 153

  • Total listings on Crexi: 802

Sales Comps (past 12 months)

  • Median sold price: $807,000

  • Sold price/SqFt: $376

  • Sold price/unit: $180,000

  • Total sales volume: $21.9 billion

  • Sold cap rate: 5.6%

  • Total SqFt sold: 1.18 billion

  • Days on market (median): 178

8. West Palm Beach

Nestled in Florida’s Palm Beach County, West Palm Beach is a thriving city on the state’s eastern coastline. It lies approximately 65 miles to the south of Fort Lauderdale and about 95 miles north of Orlando. Its proximity to the Everglades and numerous beaches make West Palm Beach a tourist favorite. West Palm Beach’s multi-family homes help house an impressive population growth, which can be attributed to the city’s appealing weather conditions, a government that supports businesses, and the benefit of no state income tax.

With its stable employment and population growth rates, West Palm Beach is an ideal city to buy multifamily properties in 2024. The Palm Beach multifamily sector offers investors and developers an excellent opportunity to profit from the city’s growth. Rents have increased by 2% over the past year, with 2-bedroom units renting for nearly $2,300 monthly. Over 50% of multifamily households are occupied by renters, with some apartments renting for more than $12,000 each month.

Crexi Intelligence West Palm Beach Multifamily Trends

Here are the most recent multifamily insights from Crexi (as of November 2023):

For Sale (active)

  • Median asking price: $1.35 million

  • Price/SqFt: $360

  • Price/Unit: $375,000

  • Asking cap rate: 5.7%

  • Days on market: 46

  • Total listings on Crexi: 48

Sales Comps (past 12 months)

  • Median sold price: $545,000

  • Sold price/SqFt: $216

  • Sold price/unit: $405,000

  • Total sales volume: $254 million

  • Sold cap rate: 5.2%

  • Total SqFt sold: 1.11 million

  • Days on market (median): 169

9. Raleigh/Durham

Raleigh’s commercial real estate market serves as an attractive hub for investors, given its status as the capital of North Carolina, while Durham is one of the state’s largest cities. Raleigh/Durham is known for being a research triangle because of the three major universities there: Duke University, the University of North Carolina at Chapel Hill, and North Carolina State University. The area is also home to numerous technology and life science companies.

The population of Raleigh/Durham has snowballed in recent years due to the strong economy and job market. The population has increased by 2.1% yearly, while employment has grown by nearly 2.0% over the same period. According to the Bureau of Labor Statistics, unemployment in both cities is at historic lows. Median rents for multifamily homes in Raleigh/Durham are over $1,560 monthly, and nearly 50% of the housing units are renter-occupied.

Crexi Intelligence Raleigh Multifamily Trends

For Sale (active)

  • Median asking price: $2.24 million

  • Price/SqFt: $287

  • Price/Unit: $280,000

  • Asking cap rate: 4.1%

  • Days on market: 384

  • Total listings on Crexi: 6

Sales Comps (past 12 months)

  • Median sold price: $600,000

  • Sold price/SqFt: $227

  • Sold price/unit: $213,000

  • Total sales volume: $361 million

  • Sold cap rate: 6.6%

  • Total SqFt sold: 750,000

  • Days on market (median): 151

Crexi Intelligence Durham Multifamily Trends

  • For Sale (active)

  • Median asking price: $700,000

  • Price/SqFt: $233

  • Price/Unit: $175,000

  • Asking cap rate: 6.0%

  • Days on market: 94

  • Total listings on Crexi: 7

Sales Comps (past 12 months)

  • Median sold price: $395,000

  • Sold price/SqFt: $207

  • Sold price/unit: $160,000

  • Total sales volume: $390 million

  • Sold cap rate: 6.0%

  • Total SqFt sold: 1.21 million

  • Days on market (median): 125

10. Oklahoma City

Oklahoma City’s commercial real estate market represents a hub of economic vitality, with an uptick in job growth driving rental rates for 2-bedroom apartments up by 6% over the past year. The city is known for its high quality of life and continuous population growth, even amidst a pandemic. It is also home to institutions like Oklahoma State University-Oklahoma City, attracting a young, vibrant populace to the city.

Median age is 36, about 90% of the figure in the US. About 34% hold a bachelor’s degree or higher, 20% more than the rate in Oklahoma. A median rent of $1,050 for a 2-bedroom place helps keep the cost of living affordable and attractive to investors seeking a steady return.

Crexi Intelligence Oklahoma City Multifamily Trends

For Sale (active)

  • Median asking price: $1.67 million

  • Price/SqFt: $166

  • Price/Unit: $125,000

  • Asking cap rate: 6.4%

  • Days on market: 185

  • Total listings on Crexi: 14

Sales Comps (past 12 months)

  • Median sold price: $225,000

  • Sold price/SqFt: $112

  • Sold price/unit: $131,000

  • Total sales volume: $221 million

  • Sold cap rate: 8.6%

  • Total SqFt sold: 2.02 million

  • Days on market (median): 96

Source: Shanti Ryle, Crexi.

Previous
Previous

How sweeping changes in real estate will impact buyers, sellers and agents

Next
Next

A new report ranks Pennsylvania as one of the best states to call home. Here’s why