Five Top Performing Secondary Markets Through Q2 2013
Digested From “Top Five Performing Secondary Markets Halfway Through 2013”
Property Management Insider (08/14/13) Parsons, Jay
Such factors as cap rate compression and price appreciation are making it difficult for apartment investors to break into the country's biggest, top-performing markets. That is why MPF Research looked at the nation's secondary markets -- those markets outside the top 100 that typically have between 25,000 and 85,000 apartment units -- to gauge their multifamily housing performance over the past year. The firm singled out five metros of this size that clearly stood above the rest in that they all ranked in the top five of annual revenue growth and annual rent change.
- Fort Myers/ Naples, Fla. – This market posted annual revenue growth of 9.5 percent and a 7.0 percent increase in average monthly rent. It also boasted an average occupancy rate of 96.4 percent
- Santa Rosa/Petaluma, Calif. – Here’s a metro area that had annual revenue growth of 7.5 percent and a 6.8 percent increase in average rent. Its occupancy rate was highest among the top five at 98.2 percent. The local job base has grown 3 percent over the past year, one of the best clips in the country.
- Corpus Christi, Texas – This market boasted annual revenue growth of 6.9 percent and a 6.3 percent hike in average rent. Its occupancy rate was 96.9 percent. This metro area gets especially high marks for being a port city and a tourism center, but has also been a direct beneficiary of the booming energy sector.
- Sarasota/Bradenton, Fla. – This metro area had annual revenue growth of 6.6 percent and a 5.8 percent increase in average rent. Its occupancy rate was lowest among the five at 96.3 percent.
- Honolulu – It had annual revenue growth of 6.1 percent and a 5.8 percent increase in average monthly rent. Its occupancy rate was 97.4 percent.
The above list of top performing secondary markets deals with past performance. Among the markets that MPF Research believes has the most promise moving forward are Greenville, S.C.; Oklahoma City; Madison, Wis.; and Albany, N.Y.
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