The Dallas metro area is seeing one of the biggest increases in multifamily construction, with starts up 72% as of Q2 2022 totaling more than $8 Billion of construction. This metro area has also rapidly grown its population, leading the nation in consistent population growth between 2020 and 2021 with a total population increase of more than 1.5% each year for the last three years. With large Fortune 500 companies across tech, healthcare, and aerospace fields bringing high quality jobs to the city, the Dallas metro real estate market is experiencing a continuous uptick that exceeds other hot markets in the country.
Similar to Texas, the state of Florida benefited in a major way from the population migration of the last few years, with the Miami metro area being one of the biggest winners as the state experienced growth of 1.6% between 2020 and 2021. Multifamily starts in Miami are up 31%, totaling $4.5 Billion in construction which highlights the current demand for rental units in the city. 42% of all multifamily transactions in South Florida during Q1 2022 occurred in the Miami-Dade County area, highlighting the strength of the local real estate market and the consistent demand supporting these types of properties. Right now, real estate investors that have the knowledge and experience to renovate or build commercial multifamily in Florida should consider Miami as one of their top prospects.
The Atlanta metro area is seeing a 68% increase in multifamily construction starts, totaling $4.2 Billion for the area. As with the other city suggestions, large population growth mixed with well-paying jobs helps to make Atlanta one of the best cities to invest in multifamily real estate. Similar to the other areas listed here, Georgia as a state experienced nearly 1% population growth between 2020 and 2021, bringing in nearly 100,000 new residents with a large percentage migrating towards the Atlanta metro area. With rising rent and high occupancy rates, Atlanta multifamily continues to be a white hot investment trend, supported by the largest multifamily property sale in the city’s history occurring in Q1 2022 for nearly $127 Million.
Colorado as a whole has seen large population gains over the last decade, with the Denver metro area receiving the lion’s share of these new residents. The Denver metro area has seen a 1.34% population increase between 2020 and 2021, which accounts for approximately 40,000 people. With the demand for living spaces constantly growing, Denver multifamily starts are up 29% year over year, totaling $2.8 Billion which is on pace to expand current inventory by almost 9% by end of year. As of Q2 2022 the area boasts an multifamily occupancy rate of over 95%, and with an unemployment rate hovering around 3%, the strong local economy is going to continue supporting the need for these multifamily projects for years to come.
Tennessee has been under the radar with its growing real estate markets, Multifamily starts in the Nashville metro area are totaling $1.9 Billion and are looking to rise consistently over the next few years. The Nashville metro area is seeing population growth of 1.26% annually and is on pace for being one of the fastest growing metro areas in the entire country. Currently, the metro area boasts a 96% occupancy rate among its stabilized properties and the city’s job growth is outpacing the national average with new job growth of more than 6% each month. With more than 20,000 multifamily units in development as of Q2 2022 and demand still outpacing supply, real estate investors should consider Nashville for their next commercial multifamily project.