Right now, the multifamily market is strong nationwide, but according to Ten-X Commercial, there will be a downturn in the next three years. Ten-X says there are some markets built to last while others just don’t have what it takes .
In its new report, the commercial real estate company lists the top five “buy” and “sell” markets as the sun sets on this long upcycle.
The top five “buy” markets are Houston, Raleigh-Durham, Salt Lake City, Fort Worth and Charlotte. Ten-X says these markets are flush with demand driven by strong local economies. Here are the highlights for each of these hot markets:
- Houston: An upturn in the energy sector is fueling the local economic growth and bolstering rents. Rents are up 6.1% year-over-year and its vacancy rate is down 50 basis points YoY. Things are looking good for H-Town.
- Raleigh-Durham: Unemployment fell 50 basis points YoY and is below the national average; job growth is at about 2% and payrolls are at an all-time peak. Rents are up 5.3% YoY and projected to continue to rise even during the eventual national economic downturn.
- Salt Lake City: Rapid job growth is driving solid absorption and vacancies remain tight in Salt Lake City. Ten-X predicts rents will rise 12.6% by 2021 and net operating income will climb by 3.4% annually during that same time period.
- Fort Worth:…