Cities Where Rents Will Rise The Most In 2021!

Multi-Family and Apartment Investing
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Cities Where Rents Will Rise The Most In 2021!

Justin Goodin
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes

Hey everyone,

I thought this was an interesting picture that supposedly shows the top cities that will have the most rent growth this year. Not surprised to see Indianapolis in the top 5. Indy has seen very steady rent growth year over year for a long time. Cap rates are compressing each year and I think we will gain a lot more attention in the coming years with how stable our market has been. 

Do you agree with all of the cities on this list? Are there any cities on this list that your company is targeting?

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Account Closed
Real Estate Agent · Sacramento, CA · Member since 2020 · 21 posts · 19 votes
5y
Originally posted by @Ola Dantis:

Pretty interesting to see Sacramento on the list... 

How so? 

Since Covid, Sacramento has seen an increase of Bay Area folks looking for a more affordable market close to home. Demand is high and supply for rentals at a low

The rental and housing market here is extremely competitive 

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  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y
    Originally posted by @Justin Goodin:

    Hey everyone,

    I thought this was an interesting picture that supposedly shows the top cities that will have the most rent growth this year. Not surprised to see Indianapolis in the top 5. Indy has seen very steady rent growth year over year for a long time. Cap rates are compressing each year and I think we will gain a lot more attention in the coming years with how stable our market has been. 

    Do you agree with all of the cities on this list? Are there any cities on this list that your company is targeting?

    Winston-Salem is a market I am very familiar with (NC) and I agree 100%! It has been growing steadily over the past few years which is why so many investors are keen on investing there. 

    Great post!

    2Reply
  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    I would think there would be a city from TN and AL on there 

    2Reply
  • Rick MartinPro Member
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
    5y

    @Justin Goodin I am surprised to see Vegas at the top of the list. I would not expect to see Birmingham or Cincinnati on this list.

    2Reply
  • Justin Goodin
    OP
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Rick Martin I was surprised to see Vegas also but I think that market is getting a lot of attention recently. 

    1Reply
  • Spencer Gray
    Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
    5y

    Not surprised at all with that list. Californians are making a mass exodus to Las Vegas, Arizona, Boise, Salt Lake City, Austin.

    Indy has been overlooked for the last 10 years, is still affordable, growing, and has one of the best post covid recovery stories in the US. 

    2Reply
  • Joseph Brown
    Investor · Charlotte, NC · Member since 2021 · 40 posts · 18 votes
    5y

    @Justin G. Where did you source the article, I’d like to read it. Thanks for sharing

    1Reply
  • Heath M.
    Rental Property Investor · Chattanooga, TN · Member since 2017 · 203 posts · 188 votes
    5y

    Chattanooga should be on there, the gig city is bringing a lot of work from home peeps to us!

    4Reply
  • Adrienne Green
    Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
    5y

    @Heath M. Agreed! Chatt was topping the charts on two different "best cities to work from home" articles last week!

    3Reply
  • Brian Walters
    Las Vegas, NV · Member since 2019 · 173 posts · 78 votes
    5y

    I've been watching the Vegas market over the last year and there has been a lot of ups and downs in home prices.  Yes, a lot of people are heading into Nevada from California but a lot of jobs have been lost within the city.  I'm heading there soon, from NYC, and personally can't wait.  I think there will be a lot of opportunity there over the next few years.

    If possible, please post the link to the article, would love to see the details.

    Thank you

    2Reply
  • Jim Spatzenfeld
    Investor · NorCal · Member since 2015 · 281 posts · 240 votes
    5y

    The list shows Austin as number 3 with a 2020 increase of -3.6% (negative 3.6%) and 2021 forecast of 3.9%, that’s barely braking even over 2 years. I wouldn’t place that on 3rd place, unless it’s a typo!

    1Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    5y

    That's what I like to see!

    3Reply
  • Justin Goodin
    OP
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Nick Giulioni Definitely! :)

    0Reply
  • Justin Goodin
    OP
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Heath M. I really like the Chattanooga market as well. I am hoping to find a great opportunity there in 2021. 

    3Reply
  • Zachary Elliott
    Real Estate Agent · Burlington, KY · Member since 2018 · 206 posts · 232 votes
    5y

    This is a great graphic. Where did the info come from?

    1Reply
  • Max Katelouzos
    New to Real Estate · Bristol, VA · Member since 2020 · 14 posts · 3 votes
    5y

    @Heath M. Work from home has definitely been a factor in the growth here. You also have to consider the start-up culture, heavy investment from manufacturers, and people relocating from cities like Nashville. Great time to be a part of Chattanooga!

    3Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    Pretty interesting to see Sacramento on the list... 

    1Reply
  • Account Closed
    Contractor · Mickleton, NJ · Member since 2020 · 114 posts · 112 votes
    5y

    @Justin G. I feel like cities is too general, I get it on average and as a whole

    But it's really about the neighborhoods...

    4Reply
  • Account Closed
    Real Estate Agent · Sacramento, CA · Member since 2020 · 21 posts · 19 votes
    5y
    Originally posted by @Ola Dantis:

    Pretty interesting to see Sacramento on the list... 

    How so? 

    Since Covid, Sacramento has seen an increase of Bay Area folks looking for a more affordable market close to home. Demand is high and supply for rentals at a low

    The rental and housing market here is extremely competitive 

    6Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y
    Originally posted by @Account Closed:
    Originally posted by @Ola Dantis:

    Pretty interesting to see Sacramento on the list... 

    How so? 

    Since Covid, Sacramento has seen an increase of Bay Area folks looking for a more affordable market close to home. Demand is high and supply for rentals at a low

    The rental and housing market here is extremely competitive 

     Fascinating! I guess the overall CA minus 5.0% rent growth is what we all are used to seeing out of CA as a state. 

    I hope the Bay Area migration doesn't exacerbate the affordability in Sacramento over the next few years. 

    2Reply
  • Justin Goodin
    OP
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Account Closed Interesting! Thanks for sharing this graph. 

    1Reply
  • Justin Goodin
    OP
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Zachary Elliott @Jim Spatzenfeld @Brian Walters @Joseph Brown The article came from a recent post made by Joe Fairless. Looks like he was quoting data from Yardi. 

    2Reply
  • Account Closed
    Real Estate Agent · Sacramento, CA · Member since 2020 · 21 posts · 19 votes
    5y

    @Ola Dantis I hope so as well!

    1Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    5y

    Birmingham is the only one that really surprises me. 

    2Reply
  • John Morgan
    Developer · Denver, CO · Member since 2021 · 1 post · 2 votes
    5y

    @Justin G.

    I have to think that Denver would be on that list. Some homes getting 20 offers in the first week in the market. Prices soaring.

    2Reply
  • Allen Wu
    Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    5y

    @Ola Dantis

    I noticed you’re from TX. What do you think about San Antonio, TX? Do you think that can be the next “Sacramento” with spill over from Austin, TX?

    2Reply
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