What are the best cities for multifamily investing in 2023?

May 11, 2023 | Market Insights

Explore the top metropolitan areas to reap a strong ROI as an apartment investor

After unprecedented growth in major markets across the country in the past couple of years, rents have begun to decelerate. Despite this, investing in apartment buildings is still a wise choice for investors interested in a recession-resistant asset and strong property values. 

Today, some of the best metropolitan areas to invest in are those in the Sun Belt, which includes states in the southern tier of the U.S. like Florida, Texas, the Carolinas, and Alabama. 

Continue reading to learn why cities are a great location for multifamily investors.

Why are cities a prime location for multifamily investing?

Choosing the right locale can make or break a lucrative multifamily real estate investment. That’s why investors are seeking out metropolitan areas to improve their long-term investment strategies.

There are several reasons why purchasing an apartment building in a city is considered a smart investment. More than half of the American population lives in metropolitan areas, and studies have predicted that there will be a continuous rise in urban populations across the globe over the next 30 years. [1] As an investor, this will positively impact your overall financial stability and greatly strengthen your return on investment (ROI). 

Now, let’s explore the cities that are best for multifamily investing in 2023 with advice from our expert team of multifamily investment advisors: 

Orlando, FL 

With a growing population, Orlando, Florida is rated as one of the best cities to invest in multifamily properties. 

“With the minimal difference between asking and effective rents, concessions being offered to new tenants coming in the door are incredibly small in Orlando which is a good sign for investors,” explains Joe LaFleur, founder and multifamily investment advisor at 100Units.

With Orlando’s low-interest rates and rise in rental demand, it’s crucial for investors to stay on top of these market trends as they can greatly impact investment strategy.

Tampa, FL

With growing rents and a strong job market, Tampa is seen as a metro hotspot that is worth looking into for your multifamily investment plans for this year.

In 2022, Tampa’s occupancy rate skyrocketed to 97.9%, and we continue to see Tampa’s population rise each year. [2]

Investors should keep an eye on Tampa’s market as its property values are projected to grow even further over the next few years. 

Jacksonville, FL 

Within the past couple years, Jacksonville’s job market grew due to their employment sectors creating more work opportunities, creating an ideal market for multifamily investors.

“Jacksonville is an up and coming area,” explains Sean McKenna, multifamily investment advisor at 100Units whose focus is on Jacksonville’s growing market. “Orlando and the Space Coast blew up over the past few years, and I think Jacksonville will be that next hot market. If you get in right now, it’s going to be an extremely lucrative investment.”

The rate at which Jacksonville continues to expand is reason to believe this city will become another hot spot for lucrative investments in multifamily properties. 

Huntsville, AL

Huntsville, Alabama is another prime city for multifamily real estate investing in 2023 due to its job and population growth, plus the cost of living being 5% below the national average. [3]

The affordability and stability of the Huntsville real estate market will attract residents to stay long term, which directly increases the need for additional multifamily properties. 

Huntsville has become a popular city for people to live in long-term, not only for its low cost of living, but its low-interest rates too. Overall, Huntsville retains the status of being economically consistent for its residents. 

Charlotte, NC

Over the past couple of years, Charlotte’s business-friendly atmosphere and growing population have sparked the attention of multifamily property investors. 

Charlotte’s population and economy are expected to rise exponentially over the next five years. As a result, the Charlotte metro area is expected to need 71,523 new apartments by 2030 to keep up with local demand. [4] As this growth occurs, Charlotte’s real estate market will make for a profitable investment in the long run. 

Houston, TX

As a whole, the state of Texas has become an attractive state to invest in multifamily real estate due to its strong economic stability and healthy infrastructure. 

When we look at Houston, investors are drawn to the city due to its cultural diversity, rising population, and job opportunities. Backed by Texas’ strong economy, Houston is a safe bet for a multifamily investment in 2023.

Ready to invest in multifamily real estate?

It’s essential to evaluate your options and goals as an investor when making the decision to invest in a multifamily property in a specific city. 

At 100Units, our team of expert multifamily investment advisors can help you determine the best multifamily market for you to invest in based on your unique portfolio, financial status, and investment goals.

If you’re looking for expert advice on investing in a multifamily property, contact our team today at 866. GO.UNITS or fill out the form here to get started.


1: United Nations | 68% of the world population projected to live in urban areas by 2050, says UN

2: Multifamily Executive | Sunny Outlook for Tampa Multifamily 

3. The Huntsville real estate market: Stats & trends for 2022

4: Charlotte Area Needs 71,523 New Apartments by 2030 to Keep Pace with Demand

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