Why 2023 Is the Best Year in Decades to Invest in Multifamily

In May of 2020, I wrote an article warning of the upcoming inflation storm that was soon to hit the U.S. I argued that it was an incredible time to lock in mortgage rates at all-time lows BEFORE inflation pushed rental rates to historical highs.

Roughly a year later, the U.S. saw the highest inflation rates in decades.

The window between the start of our historical inflation and when the Fed increased interest rates was a great time to acquire assets while interest rates were at a historical low.

Yet that opportunity is no where near as exciting as what will happen in 2023...

In addition to predicting the alarming jump in inflation contrary to low interest rates, I also wrote repeat articles in 2020 and 2021 stating that Indianapolis was the best market in the country for investing in apartment complexes.

At the time, Indianapolis wasn’t even on the top 10 in the nation for rent growth:

Rent growth november 2020

Though Indianapolis was not considered a Top 10 market at the time, our research indicated differently. We aggressively began purchasing properties in this market.

Today that story has changed. Yardi Matrix has identified Indianapolis as the #1 market in the country for rent growth. Indianapolis has not only far exceeded the national average of 7% rent growth, it is the only U.S. city that exceeded 10% rent growth (11.4% as published by Yardi Matrix).

(C) 2020 CoStar Realty Information Inc.

We are not in the business of speculation or predicting markets. Yet our strategy and track record continue to speak for themselves.

Even as rates and inflation hit an all-time-high, our investors achieved a 59.66% IRR on our most recent disposition.

Yet, we have never been more excited than we are for the opportunities in 2023.

We believe there will be more opportunities this year than we've seen in the past 15 years. Here's why…

Interest rates are essentially double what they were a year ago. In some cases, we're seeing price reductions of 25-30%. The increased cost of capital is forcing serious sellers to reduce their price.

For this reason, there is a MASSIVE opportunity to acquire cash flowing properties at a large discount in 2023.

Our longterm strategy enables us to purchase properties today at a discount and unlock additional value with our management team and market expertise.

We have identified several exciting markets this year and we’ve decided not to publish them. But if you’d like to learn more about our strategy in 2023 and our 4 top markets, set up a call with me to learn more.