Choosing A Multifamily Market

Regardless of the state of the overall US economy, at any given time there are large, medium and small metropolitan areas in the US that are experiencing growth, areas that are in a period of market stability, and areas in which the market for single family, multifamily, and commercial real estate is in a period of decline. In the broadest sense, an ideal market is one in which growth-oriented and business friendly municipal governments have created a climate that attracts a growing number of potential employers. This positive spiral of a growing employment base and a corresponding growing tax base can create markets that will sustain high growth rates of employment, real estate values, and rents. Phoenix Multifamily Group, LLC seeks out these emerging real estate markets as the first of many filters we use to define our potential acquisitions. A graphical model of this emerging market concept is depicted below. While the various phases of a typical market can be described as shown in The Phoenix Multifamily Market Lifecycle™ diagram, the durations of these various market phases are highly variable, with some markets experiencing periods of expansion that last decades, while other markets can move from market bottom to market top and into decline in a matter of just a few years.

By paying close attention to the conditions of the potential markets available to us, we ensure that the properties we purchase are located in areas with a continued high likelihood of cash flow improvement and value appreciation.