MULTIFAMILY

The Southeast apartment outlook has improved substantially since some of the region’s metros took a significant hit during the global pandemic. Most markets are seeing robust recovery and historical highs in rent growth and historical lows in vacancy rates.

Investors are drawn to the area by the influx of Fortune 500 companies relocating or expanding to the Southeast, bringing a growing workforce with a need for housing. Vacancy rates are at an all-time low for several of the region’s prime and secondary markets. The pandemic changed how renters viewed their apartment living. No longer did they want high rises and dense cities, but instead, places with access to outdoor activities for an affordable rate. This trend has pushed states such as Florida, South Carolina, Texas, and Tennessee to experience an influx of movers looking to rent.

Investors are pouring capital into the Southeast, drawn by the market’s strong demographic trends and impressive performance.

Atlanta has seen a surge in investor interest and demand as the metro continues to see historical population growth fueled by large company relocations and expansions. The city reported historical multi-family sales of over $18B in 2021, $10B above the market’s previous record. Atlanta also reported robust and much-needed development. Last year, Atlanta delivered 8,000 units and, as of Q1 2022, has approximately 22,500 units under construction, according to CoStar.