Scouring the nation for your next cash cow multifamily acquisition? Look no further than these four underrated cities RealPage says have great upside.
Things are a little too competitive for to be profitable for many investors in the primary markets. RealPage’s picks are not the sexiest markets, but their fundamentals are solid and their growth potential make them worthy candidates for investment.
1. Knoxville, Tennessee
A college town with a solid economic base, Knoxville has been sleepy during this cycle, but is stirring now.
Knoxville is not a hot job node, but it does have the University of Tennessee, the Department of Energy’s massive presence in Oak Ridge and several large healthcare facilities that keep the economy humming along and talent ready to go.
Knoxville has also benefitted from a relatively conservative construction pipeline this cycle, which have kept demand ahead of supply during this cycle. Occupancy has been hovering between 95% and 97% for the last three years, and as of the second quarter of this year, occupancy was at 96.4% while rent growth is at a near all-time high at 5.4% annually.
2. Tacoma, Washington
Tacoma’s multifamily market is blazing right now. Strong employment growth and spillover…