Where should investors be paying attention right now? Here’s a look at three markets worth watching, each for a different reason.
Orlando, FL
If you’re one of the many investors looking at Florida, the political climate there just saw a fundamental shift that’s yet to be fully understood: a change to Disney’s special tax treatment. Anyone considering property in Orange and Osceola Counties will want to weigh carefully what this new tax law change could mean going forward.
San Antonio, TX
If Texas is on your radar, San Antonio is worth a second look for its resilience during downturns. According to Real Page Analytics, San Antonio tends to rank among the lowest occupancy performers across the nation’s 50 largest apartment markets. That slow-and-steady profile means the market generally misses out on the big occupancy and rent growth jumps seen elsewhere in the state, but it also tends to dodge the deep declines during downturns. Occupancy approaching 97% is a notable record for a market that has averaged closer to 93% over the past decade.
Central PA
And back to Pennsylvania, where cash-on-cash returns can rival the hotter markets in Texas and Florida. The logistics sector keeps propelling the Harrisburg metro industrial market to new highs. A recent slowdown in both starts and deliveries across the metro has helped drive asking rents, and the pace at which they’re growing, in line with the Lehigh Valley region, and a wave of speculative space is likely to drive millions of square feet of leasing and absorption through the rest of the year. That growth in industrial development means more jobs, which means more people and more housing demand. That puts pressure on rents to keep rising, likely at a slower pace than the roughly 9.1% growth seen in 2021, but still meaningful. Local owners point to the deep shipping market and high levels of state employment as buffers during turbulent times.
Curious how rent growth compares to inflation across these markets? Looking for an evaluation on whether your portfolio is performing its best for current market conditions? Call us for an open discussion on which markets work best for you.
