Under The Radar Apartment Markets That Are Strong Performers
Where can you still find affordable apartments in cities with good economic growth and jobs?
A new study out has found several “under the radar” smaller metros where things are booming for both landlords and renters who can find more affordable places to live.
While you hear regularly about places with high rental demand like San Francisco, Seattle, and New York, there are smaller mid-size metros where the demand is just as good says a new study by Axiometrics.
“Some metros such as Chattanooga, Ann Arbor and Reno may not have the same clout as the larger metros mentioned earlier, but would still make wonderful places for many people,” writes Carl Whitaker, chief real estate analyst for Axiometrics.
Here is a chart from Axiometrics on the “under the radar” markets.
So Why Are These Metros Worth An Apartment Market Discussion?
Here are a few examples:
- Not just a college town, Athens, Georgia Athens “has seen some of the strongest job growth in the nation – an estimated 4.0% job growth between June 2015 and June 2016 – which means those looking to rent an apartment in the area probably won’t have much trouble finding a job,” says Axiometrics. Athens can offer historical, tree lined streets to newly developed neighborhoods, and in-town living with houses, condos, townhomes, and apartments in addition to the student housing.
- Reno, Nevada has had recent job growth, which is among the nation’s best since the beginning of 2015, with multiple employment sectors including mining, logging, and construction, professional and business services, and trade, transportation and utilities all growing more than 4% . You cannot mention Reno job growth without mentioning the new Tesla battery factory under construction and what will be coming in the years ahead. To meet the legal requirements of the $1.3 billion tax incentive package awarded to land the project in Nevada, Tesla and its partner Panasonic must invest at least $3.5 billion in the project within 10 years. According to public documents, about $374 million has been invested so far, says the Reno Gazette-Journal.Tesla employees have begun relocating from the San Francisco Bay Area, buying houses in leafy neighborhoods and enrolling their kids in local schools. “The city has lured several large technology companies. Apple Inc. is building a data center. Amazon.com Inc. moved a distribution warehouse from rural Fernley, Nevada, to a 1.2-million-square-foot warehouse closer to Reno. Switch, the Las Vegas-based developer of data centers, is building a facility near Reno and helping to fund the University of Nevada at Reno’s new innovation center downtown,” writes Bloomberg news.
Downtown Reno, Nevada photo by Ken Lund via creative commons
- Tacoma, Washington, gets overlooked because of nearby Seattle, but Tacoma is much cheaper than Seattle. While the average rent in Seattle will cost you almost $1,700 per month, the average rent in Tacoma is about $500 less. The long commute to Seattle may scare some folks off, but Tacoma job growth has been steady at 3.5% so commuting may not be necessary. While Tacoma's rental rates are climbing, it is still a good option to Seattle as people get priced out of the Seattle area and are moving to lower-cost markets like Tacoma, writes the Puget Sound Business Journal. Apartment investors are responding by buying suburban properties in the Tacoma area.