best multifamily markets


Key takeaways

  • Columbus, Baltimore, and Indianapolis are a few of the best multifamily markets to consider when investing in 2024.
  • Multifamily properties are still a good investment because of their potential for sturdy investment returns and nominal risk.
  • The ROI of most multifamily investments stands somewhere between 14% and 18%.


If you’re looking to invest in multifamily housing, knowing the best markets is a good place to start. As such, understanding market trends and locations can help you make more informed investment decisions. What’s more, getting an idea of which cities, states, and counties are experiencing higher multifamily property demands will empower you to invest wisely.

In this post, you’ll get a list of the top seven multifamily markets to consider in 2024 and why they’re standing out. Then, we’ll answer a few questions about multifamily market investing that will help you better understand the process.

This post covers:


ButterflyMX CTA


Where is the best place to invest in multifamily real estate in 2024?

Some top factors that make a property market attractive are rent growth, demand for affordable housing, property taxes, and the local job market. So, when looking at the best markets to invest in multifamily housing, these are only some of the markers being used to determine value.

Based on an accumulation of data, these are the best places to invest in multifamily housing:

  1. New York City
  2. Columbus, Ohio
  3. Indianapolis, Indiana
  4. Boston, Massachusetts
  5. Southwest Florida Coast
  6. Baltimore, Maryland
  7. San Diego, California


1. New York City

Rent growth: 5.50%
Lease renewal rate: 60.9 percent%

New York City offers one of the most varied and dynamic cultural experiences in the United States, which makes it a magnetic attraction for renters of all kinds.

What’s more, the demand for multifamily housing has only increased with the influx of renters. As such, year-over-year rent growth is up by 5.50%, and — evidenced by a lease renewal rate of over 60% — renters are leaving at slightly slower rates than in other markets.

So, if you’re looking for one of the best places to buy multifamily housing in a bustling city, New York City is a good possibility.


2. Columbus, Ohio

Rent growth: 8.8%
Lease renewal rate: 61.0%

Columbus, Ohio, has seen impressive growth recently. And depending on what type of housing someone is looking to invest in, it can mean a pretty large return. For instance, student housing investment could be beneficial for some hoping to garner revenue from student renters.

However, the biggest profit from multifamily housing investment in Colombus will likely come from the governor’s proposed $400 million tax credit to housing investors. As such, this provides the perfect opportunity for people to get into the multifamily investment market while also helping fight the housing crisis.


best multifamily markets- Columbus Ohio


3. Indianapolis, Indiana

Rent growth: 9.1%
Lease renewal rate: 59%

Indianapolis is known for being an employment hub with a variety of employers, from Amazon to FedEx. For that reason, it lands on the list as a good place to invest because job security has the potential to keep renters in the city long-term.

What’s more, Indianapolis is known for its easy access to public transportation. Moreover, investing in properties close to the bus station and bike trails can easily have a positive impact on tenant retention.


4. Boston, Massachusetts

Rent growth: 10.4%
Lease renewal rate: 58.9%

If you’re looking for a mix of historic and modern architecture, then Boston is a great place to consider investing. Whether it’s the prestigious colleges or the innovative healthcare institutions, Boston reliably brings in new renters while effortlessly maintaining others.

Furthermore, Boston’s 5.4% vacancy rate guarantees it’s one the best cities for multifamily investing because of the promising anticipated cash flow.


5. Southwest Florida Coast

Rent growth: 15.3%
Lease renewal rate: 72.9%

It’s no secret that Southwest Florida — from Tampa Bay to St. Petersburg — is one of the most coveted locations with its year-round warmth and beach cities. While rental properties, student housing investments, senior housing, and vacation rentals abound, it’s also a great place to invest in multifamily properties.

What’s more, Florida’s reputation for being one of the most affordable places to buy property makes it a popular location for property investment. In fact, investment numbers have soared well past $800 million within the last several years.

However, one thing to keep in mind before investing in real estate in one of Southwest Florida’s cities is the need for property insurance. If you invest, you’ll need to make sure you have enough of a return to justify the cost of covering the property.


6. Baltimore, Maryland

Rent growth: 7.9%
Lease renewal rate: 60.7%

Because of its established nature, Baltimore is often overlooked for its investment potential. However, that would be an oversight as Baltimore offers more than just blank spaces for construction projects.

For instance, existing architecture offers the opportunity for new investors to buy and renovate without the added cost of constructing a property from the bottom up. Baltimore’s proximity to the Capitol and the booming economy of the tri-state area known as the DMV makes it a coveted rental market for those who can’t afford the D.C. prices.


7. San Diego, California

Rent growth: 10.0%
Lease renewal rate: 55.7%

Despite recent bad press on the state, San Diego still stands as one of the best cities to invest in multifamily properties. The reason is that the near-constant mild climate and bustling economy make it an attractive location for renters.

While some might lament the rising price of single-family homes, investors will find that the demand for affordable living will increase the return on multifamily housing construction. This makes it a stable multifamily investment with the potential for increased earnings.


Discover how ButterflyMX can boost your NOI:


FAQs about the best multifamily markets

Here are the answers to some of your frequently asked questions about multifamily market investments:


Is multifamily still a good investment?

Multifamily properties are still a good investment because of their potential for sturdy investment returns and nominal risk.


What is a good ROI for multifamily investment?

Currently, The ROI (rate of investment) of most multifamily investments stands somewhere between 14% and 18%. This can be maximized by increasing rent, adding more units, and increasing occupancy rates.


Download the ButterflyMX NOI report

Disclaimer: This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. Nothing contained on our site constitutes a solicitation, recommendation, endorsement, or offer by ButterflyMX or any third-party service provider. ButterflyMX is not a financial adviser. You should always seek independent legal, financial, taxation, or other advice from a licensed professional.

Profile image for Rebecca Cline


Rebecca Cline

Rebecca is based in Northern Virginia and has been a writer all her life. She loves learning new things and enjoys writing everything from real estate to property management!

Follow Rebecca on LinkedIn