An interesting read in Mutlifamily Executive about best practices when investing in secondary and tertiary apartment markets. In other words places like the Triad. One of the most important factors? Pent up demand due to a lack of new apartment supply:
Remember the supply side of “supply and demand”: Multifamilydemand drivers like job announcements and immigration receive more press than the local apartment supply pipeline. However, the lack of new apartment supply in secondary and tertiary markets is a crucial, often-overlooked, factor. These markets are consistently less attractive to new apartment developers than primary markets, even though fundamental demand drivers such as capital cities, regional medical centers, and long-standing higher-education institutions help create stable renter demand.
Read the rest of the article here.