How We Picked Our Markets
There’s 3 defining features for how a project is executed well.
Good operating team
Buying at the right price
Strong market
In this one, I’m going to highlight what I think is fundamentally the most important part of multifamily real estate, which is the ability to grow your income. We can take a step back and look at the fundamentals of picking a strong market, which will drive income growth and therefore valuations.
Rent (Net Operating Income) Growth <- Wage Growth <- Job Growth <- Population Growth
Florida (#1, 1.9%)
Texas (#4, 1.6%)
Texas (#1, 5.77%)
Florida (#4, 87%)
North Port, FL (#1, 17%)
Austin, TX (#3, 10%)
Jacksonville, FL (#6, 10%)
Orlando, FL (#7, 10%)
Miami, FL (#14, 8%)
Pandemic rent growth has show extremely strong performance that is likely to continue or maintain. We are seeing market weakness in some, but historically rent tends to move with inflation.
Texas
These communities often have great educational systems and provide more value for money. They are ideal for millennials seeking a place to raise a family. The suburbs of Dallas and Austin are by far the most popular areas to purchase in Texas. Real estate brokers also report increased sales of lake properties and ranches as individuals seek ways to get away from congested cities.
Florida
Zillow Appreciation Data
