The NREI survey asked respondents to rank regions in terms of attractiveness from a multifamily perspective. Respondents rated four regions on a scale of one to 10 with one being least attractive. The regions were: West/Mountain/Pacific; South/Southwest/Southeast; Midwest/East North Central/West North Central and East.
Unsurprisingly, the West/Mountain/Pacific region received the highest ratings from respondents. It had an average rating of 7.87 with 11.5 percent of respondents ranking it 10, 22.2 percent ranking it ninth and 22.6 percent ranking it eighth.
The responses are in line with NREI’s ranking of the top 10 multifamily markets in the nation. Half of the list was located in California, and seven of the 10 markets were located on the West Coast (all of which is consistent with NREI’s previous article on top multifamily markets).
The runner-up was the East region, and the least attractive region was the Midwest/East North Central/West North Central with an average ranking of 6.57 percent. Just 1.9 percent of respondents ranked this region as a 10.
Despite these findings, apartment players contend that there are opportunities in every region. Steadfast Income REIT Inc., for example, is focused on growth markets in the middle of the country rather than on the coasts. The non-traded REIT owns 65 communities in 11 Midwestern and Southern states, and recently acquired properties in Dallas and Chattanooga, Tenn.
“Forty percent of Steadfast’s portfolio is in Texas, and those markets have outperformed even our expectations,” says Ella Shaw Neyland, president of Steadfast Income REIT. “All the markets we’ve picked have outperformed our expectations.”
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