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The Best Cities For a Multi-Family Investment Right Now

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For those passionate about real estate and searching for a secure investment vehicle, multi-family properties can be an excellent choice. Whether you are interested in renovating an older building and flipping it for a profit or generating rental income, multi-family rentals are often much easier to finance than other types of real estate investments. Owning a multi-family property also offers the ability to grow your rental property portfolio quickly, and having more tenants means that the risk you take by being a landlord drops significantly. Right now, many cities across the United States are simply bursting with opportunity for those seeking a multi-family real estate investment.


Known for its lively music scene and wealth of bars, restaurants, and cultural attractions, Nashville, Tennessee, has also earned a reputation for being one of the best-performing multi-family real estate markets in the United States. The city is home to a number of employers that are included in the Fortune 500, and its population has continued to increase rapidly as a result, creating a high demand for housing. 

Compared to the country’s coastal cities, Nashville’s multi-family real estate investments typically offer higher yields and construction for multi-family residences continues to be impressive. Downtown Nashville is the city’s beating heart, making it the most desirable location for those who work in the area’s most thriving industries, which include healthcare, education, tourism, arts and entertainment, and advanced manufacturing. Suburbs, including areas like Murfreesboro and Williamson County, have also experienced increased demand.


Chicago has recently emerged as one of the country’s best locations for multi-family real estate investments. Investors can choose from a range of property types, like mid-rise apartment buildings, townhomes and duplexes, garden-style apartment buildings, or walk-up apartment buildings. Chicago offers tremendous growth potential, resulting from several key trends that include the development of communities focused on transit and ease of commuting, neighborhood revitalization efforts, the demand for luxury properties, and the continued diversification and growth of Chicago’s economy. While some investors may prefer to operate and manage their own properties, Chicago is home to a wealth of experienced property management teams that can ensure efficiency and profitability. 


Jacksonville, Florida, is in the midst of an unprecedented period of economic growth and population expansion, making now an ideal time to invest in multi-family real estate. Demand for multi-family housing in the Jacksonville area is high, not only for full-time residents but for seasonal visitors as well. As a result of the influx in demand, rental prices are on the rise, generating even greater passive income for property owners. Despite this increase in rent, Jacksonville still offers more affordable housing than larger coastal markets, attracting renters looking to take advantage of the discounted cost of living.


With vacancy rates below average, Milwaukee, Wisconsin, has the attention of real estate investors across the United States, especially those in the multi-family property market. Rental prices in the city have consistently been on the rise, a boon for property owners, and the demand is largely the result of the current real estate climate. High-interest rates and worries about inflation have slowed home sales and compelled would-be home buyers to rent until rates come down. Investors are likely to see the biggest gains from revitalization in Milwaukee’s Downtown areas as well as renovating and adding value to older residential buildings. 


Experts have suggested that Indianapolis may very well be one of the most underrated multi-family real estate markets in the Midwest, evidenced by its strong rent growth year after year and a boom in its biggest industries. The increased rental growth shows a high demand for more rental properties throughout the city, and there has recently been a noteworthy increase in the number of rental units being developed. The city’s robust construction industry, among other thriving industries, is reflective of an increasingly dynamic economy, which means that it is the ideal location for investors with an eye to the future. Furthermore, increased demand leads to better financing opportunities, making multi-family investments even more attainable for seasoned and experienced real estate investors alike.


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