Industry Analysts Echo Capital Square’s Data-Driven Market Selections
For Capital Square, every real estate acquisition and development begins with our data-driven market selection process. Constantly dissecting the latest regional reports, examining historical indicators and parsing real estate intricacies – such as forward rates, calculating tax-equivalent yield and DST distribution analysis – our expert team moves forward with meticulously designed strategies. The long view is always top of mind.
When Gusto recently highlighted 2023’s fastest-growing cities for jobs through September 2023, we were not surprised to see some familiar locations on their list:
- Louisville, Kentucky sat in the number one spot with 2.5% growth;
- Virginia Beach, Virginia was at number two with 1.5% growth; and
- Richmond, Virginia tied for number three with 1.1% growth.
Here are three cities with tremendous multifamily potential where Capital Square has already made meaningful acquisitions, and the latest numbers reaffirm what we already recognized.
Why is Capital Square confident in the rental market in Louisville, Virginia Beach and Richmond? The latest data confirms what we’ve been watching for years.
The Latest on Richmond
The Mid Atlantic Real Estate Journal recently noted that Richmond is Virginia’s fastest growing region and that investors have taken note. The capital city, and Capital Square’s hometown, averages 28 new residents every day, making the MSA #15 in the nation for highest population growth. This growth is likely tied to Richmond’s #9 ranking as a location for corporate headquarters and corporate campuses by Business Facilities Magazine, as well as the eight Fortune 500 companies and three Fortune 1000 companies already in the city.
The News on Virginia Beach
Virginia ranked second in CNBC’s “America’s Top States for Business” in 2023, and cities like Virginia Beach are drivers of this impact, supporting a variety of industries and a diverse workforce. Virginia Beach also ranks among “the most desirable places to live in the U.S. in 2023-2024,” by U.S. News & World Report.
Capital Square has acquired several multifamily communities in Virginia Beach, also recognizing the strong market fundamentals of this live, work and play city.
What’s New in Louisville?
A recent article in Southeast Real Estate Business magazine titled “Investors Target Louisville as Multifamily Market Outperforms Expectations” focuses on updated micro and macro market data, including Louisville’s status as one of the most affordable markets in the nation. This Kentucky city, famous for its bourbon and thoroughbreds, is a little-known gem we’ve had our eye on for a while at Capital Square. That’s why we have multiple properties in the area, including an open investment offering.
Furthermore, Louisville’s recent population growth and decreasing tax rates, are signs that this real estate market has longevity.
Multifamily Investments Prosper in Strategic U.S. Markets
Beyond the latest data on Richmond, Louisville and Virginia Beach, CRE Daily notes The American Federation of International Real Estate (AFIRE)’s recent prediction that the appeal of multifamily’s stable returns will be an increasing draw for investors in a challenging market. In addition, Realtor.com’s Chief Economist Danielle Hale recently noted that renting is more economical than buying in nearly all major U.S. markets.
Considering high occupancy rates, ongoing rent growth and the ongoing shortage of housing, the fundamentals of multifamily are robust – especially in thoughtfully chosen U.S. markets.
We have our eyes on many cities in the Southeast and across the Sun Belt. Our selection criteria remains systematic and conscientious, as we continue to raise capital, buildings and expectations – always with investors first.