Since 2020, various facets of our economy have faced different effects of the Coronavirus pandemic. Many people were displaced due to unemployment and other consequent difficulties. Nonetheless, many sectors of the economy are getting back on track, and people are returning to full-time employment after two years of fighting Covid-19.
While New York was one of the worst-hit states, its job market and various tariffs were far from being balanced at the time. However, many people in other states earned a higher income via property appreciations with unbeatable home decor compared to their salaries.
This was a result of migration from high-tax states like California and New York towards tax-friendly states like Florida. This movement spiked the rental markets in several such second-tier cities.
Let’s look at five tier-2 American cities that have attractive multifamily investment opportunities.
Houston, Texas
Houston has one of the best job markets in the US and is home to the Oil and Gas industry. The most attractive quality of this state is it’s below than national average unemployment rate.
While being the fourth largest city in the country, it is also home to the second-largest number of fortune 500 companies, after New York. This statistic sometimes makes people think of Houston as a relatively expensive place to live. However, Houston is still affordable while having a status of hot real estate market after California and New York.
Atlanta, Georgia
In recent years, Atlanta has been experiencing steady population growth. It has grown up to 14% in the last decade with no signs of slowing down while being the eighth largest economy in the country. It is also home to many large companies like Coca-Cola and CNN. With workers moving in and relocating regularly, these companies collectively held approximately 3500 jobs in the city.
The increase in population and the growing economy make Atlanta a great multifamily investment opportunity.
Orlando, Florida
Orlando has a strong rental market because of its tourist attractions. It is estimated that around 60% of the people in Orlando are renters. It is also a hub for tech companies. So even though the pandemic crushed the tourism sector, its collective economy made a steady comeback.
Also, Orlando is the second-fastest-growing city in the United States. It is now the third-largest city in Florida, with about 2.5 million people, which means real estate is on the boom.
Tampa, Florida
After Orlando, Tampa attracts people because of its pleasant weather and business-friendly tax regimes. There are at least four fortune 500 companies headquarters in Tampa. It’s also a destination with several tourist attractions leading to a very stable employment rate.
Furthermore, the living costs are 5% lower than the national average, making Tampa a place with high potential for its housing market.
Columbus, Ohio
Columbus has special characteristics regarding real estate due to its landlord-friendly state laws. It is one of those places where laws governing rentals are mostly in favor of the landlords. Although this makes it attractive to multifamily investors, it also means less protection to tenants.
Nonetheless, according to statistics Columbus’s population is on the rise. Due to this, real estate prices went up 8.4 % in the last couple of years. Also, the unemployment rate in Columbus is relatively low at 4.4 %. It is also the fourth out of 50 states in terms of GDP, making it another ideal location for multifamily property investment.
Takeaway
The cities we covered in this post were based on several factors such as population, migration trends, employment statistics, local tax regimes, and experts’ experiences of investing in multi-family properties. These factors vary from state to state. Knowing each local market while considering huge investments like multifamily real estate is important. After all, the economy of the entire country doesn’t necessarily reflect the individual statuses of each local market where you can buy heaters, furniture, and other stuff for your property to sell your property.
