Orlando, Seattle, and Dallas Showing Stronger Growth

Commercial Observer is out with a new report from Arbor Realty Partners titled Top US Markets for Multifamily 2019. The report examines how multifamily markets have fared over the past year. It also explores high-demand markets moving forward.

Arbor finds that Sun Belt cities and areas with a large tech presence will be the best markets for multifamily housing demand over the next few years.

Commercial Observer Talks Cities Around the U.S.

Among smaller cities, Arbor writes, “Along with the rest of the state of Florida, Orlando is experiencing a rapidly expanding labor market.”

The report says that “Orlando’s year-over-year employment growth as of July 2019 hit 3.8%.” The data shows that Orlando had the fastest growth rate for all of the top-50 metros.

“Widening the scope to include all of the country’s smaller metro markets (396 in total), including Orlando, five of the 15 fastest-growing MSAs are in Florida,” the report says. “Orlando’s employment base grew by 49,000 workers during the 12-months ending in July 2019.”

Orlando experienced the most significant growth of any Tier 3 metropolitan area.

Commercial Observer says that between 2015 and 2017, Orlando’s renter population grew by an average of 2.1% annually. That figure was second to only Omaha across the top 50.9.

Seattle Grows at a Solid Rate

Among mid-sized cities, the report notes that “Seattle tops the list.”

The report says the “Emerald City continues to be a hot spot for attracting top tech companies and talent, with 15.7% of renters working in science, technology, engineering, arts/design or mathematics (STEAM) occupations.”

Meanwhile, for the larger cities, Boston edges out Dallas for the top multifamily market.

“When controlling for the existing population, new multifamily permits in Boston far outpace the Big Apple in terms of both new housing units and new multifamily structures. Compared to all other Tier 1 metros, Boston has the highest share of Millennial renters, accounting for 35.5% of the metro’s renter population,” the report says.

This year’s edition of the Top US Markets for Multifamily Lending also examines the largest multifamily market, New York. Finally, you can get a copy here.