Over the years, one of the profitable real estate investment strategies has been multi-family properties.
These offer a stable cash flow and good prospects for growth. Whether you are adding to your portfolio or taking your first investment in this sector, the right location becomes all-important.
Depending on various factors, such as house prices, rental demand, local economic growth, and vacancy rates, the location considered ideal to purchase multi-family properties will change.
This guide will aim to give a detailed outlook on both U.S. and non-U.S. locations that maintain high returns on investments in multi-family properties.
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What Are Multi-Family Properties and Why Invest in Them?
Definition of Multi- Multifamily Properties
Multi-family properties are a type of residential building meant for occupancy by more than one family in separate units within a single structure.
This could be everything from small duplexes and triplexes to quite large apartment complexes.
Each unit within a multi-family property will have its own kitchen, bathroom, and living area but will share common walls, parking, and sometimes amenities that include on-site laundry facilities.
The most common types of multi-family properties include:
- Duplexes: Two units in one building.
- Triplexes: Three units in one building.
- Fourplexes: Four units in one building.
- Apartment buildings: buildings that house five or more units.
These properties contrast with single-family homes, which are designed for one family and cannot provide options for multiple streams of income in rentals.
30+ Best Places to Buy Multi-Family Properties in 2024
| Rank | City/Region | Median Property Price | Vacancy Rate | Rental Demand | Best For |
|---|---|---|---|---|---|
| 1 | Austin, TX | $500,000 | 3.5% | High, due to tech and population boom | Appreciation & rental income |
| 2 | Atlanta, GA | $400,000 | 5.0% | High, driven by job growth | Cash flow & long-term appreciation |
| 3 | Dallas, TX | $420,000 | 4.8% | Increasing, diverse economy | High demand for multi-family units |
| 4 | Orlando, FL | $350,000 | 4.0% | High, driven by tourism | High rental yields & tourism-driven market |
| 5 | Phoenix, AZ | $380,000 | 5.2% | Strong, rapid growth in tech and healthcare | High appreciation potential |
| 6 | Charlotte, NC | $330,000 | 4.7% | High, driven by financial sector growth | Steady rental income & population growth |
| 7 | Tampa, FL | $340,000 | 4.1% | High, tourism and growing economy | Steady rental demand & affordable entry |
| 8 | Denver, CO | $600,000 | 3.8% | Strong, driven by tech and outdoor lifestyle | High appreciation & rental demand |
| 9 | Nashville, TN | $450,000 | 3.2% | High, growing entertainment sector | Steady rental income & long-term growth |
| 10 | Chicago, IL | $450,000 | 6.5% | Strong, job growth in diverse industries | Long-term growth & stable returns |
| 11 | Salt Lake City, UT | $430,000 | 3.6% | High, tech and outdoor recreation | High rental demand & appreciation potential |
| 12 | Raleigh, NC | $350,000 | 4.3% | Steady, growing tech hub | Steady rental income & population growth |
| 13 | Portland, OR | $470,000 | 4.9% | High, eco-conscious and tech professionals | Stable rental income & long-term growth |
| 14 | Columbus, OH | $320,000 | 5.5% | Growing, driven by job market | Affordable multi-family investment |
| 15 | Indianapolis, IN | $300,000 | 5.7% | High, driven by healthcare | Affordable prices & rental growth |
| 16 | New York City, NY | $1,200,000 | 3.0% | Extremely high, driven by population density | High returns in prime areas |
| 17 | San Diego, CA | $850,000 | 3.7% | Very high, strong rental market | High rental income & long-term appreciation |
| 18 | Brisbane, Australia | AUD 1.1 million | 1.6% | High, due to population growth | Long-term appreciation in stable economy |
| 19 | Toronto, Canada | CAD 900,000 | 1.5% | Very high, driven by immigration | Steady rental income & appreciation |
| 20 | Houston, TX | $320,000 | 5.2% | High, healthcare and energy sectors | Affordable entry with high rental yields |
| 21 | Jacksonville, FL | $320,000 | 4.4% | Increasing, job growth | High rental yields & long-term potential |
| 22 | San Antonio, TX | $300,000 | 4.7% | Steady, population growth | Affordable investment & cash flow |
| 23 | Kansas City, MO | $260,000 | 4.8% | Strong, affordable housing demand | Affordable investment with rental growth |
| 24 | Lisbon, Portugal | €300,000 | 1.8% | High, driven by expats & tourism | Long-term appreciation & rental income |
| 25 | Seattle, WA | $750,000 | 4.1% | Strong, driven by tech professionals | High appreciation in tech-driven market |
| 26 | Melbourne, Australia | AUD 850,000 | 1.7% | High, driven by population growth | Long-term growth with strong demand |
| 27 | Philadelphia, PA | $320,000 | 5.3% | Steady, student housing demand | Affordable investment with steady demand |
| 28 | Los Angeles, CA | $900,000 | 4.2% | Extremely high, driven by entertainment | High rental income & long-term appreciation |
| 29 | Miami, FL | $450,000 | 3.9% | Strong, international business hub | High rental demand & long-term growth |
| 30 | Honolulu, HI | $700,000 | 2.5% | Very high, driven by tourism | High rental demand & appreciation |
Finding the best places to buy multi-family properties is a combination of analyzing rental demand, market growth, job availability, property prices, and economic conditions
Here is a comprehensive list of the top cities and best places to buy multi-family properties, covering both established and emerging markets, that offer excellent investment opportunities for multi-family properties.
1. Austin, Texas
Austin is one of the fastest-growing cities in the U.S. and has a vibrant job market, particularly in the tech sector. The city’s growth has led to a surge in housing demand, especially for rental properties. As a result, multi-family properties in Austin are highly sought after by both local and out-of-state investors.
- Median Property Price: $600,000+
- Vacancy Rate: 4.2%
- Rental Demand: Strong, driven by tech sector growth
- Best for: Long-term appreciation and rental income
2. Atlanta, Georgia
Atlanta’s economic diversity—spanning tech, logistics, film, and healthcare—makes it an attractive market for multi-family properties. With affordable property prices, strong rental demand, and population growth, Atlanta provides a solid balance of cash flow and appreciation potential.
- Median Property Price: $390,000+
- Vacancy Rate: 4.8%
- Rental Demand: Growing due to population influx
- Best for: Affordable investment with steady demand
3. Phoenix, Arizona
Phoenix has been a major growth hub, experiencing rapid population increases over the past decade. This influx of people, coupled with its affordability and robust job market, has created a strong demand for rental properties.
- Median Property Price: $420,000+
- Vacancy Rate: 3.9%
- Rental Demand: High, due to continued population growth
- Best for: High rental yields and long-term growth
4. Orlando, Florida
Orlando’s tourism and healthcare industries continue to fuel population growth and job opportunities, making it a prime market for rental properties. The city’s affordable housing market offers excellent cash flow potential for multi-family property investors.
- Median Property Price: $350,000+
- Vacancy Rate: 3.7%
- Rental Demand: Steady, due to tourism and job growth
- Best for: Steady rental income with growth potential
5. Raleigh-Durham, North Carolina
Raleigh-Durham’s tech and research industries have contributed to steady job growth, leading to increased demand for rental housing. The area’s population growth, coupled with a relatively affordable real estate market, makes it one of the best places to buy multi-family properties in 2024.
- Median Property Price: $450,000+
- Vacancy Rate: 4.1%
- Rental Demand: High, driven by tech job growth
- Best for: High rental demand in a growing tech hub
6. Dallas, Texas
Dallas offers a diverse economy and a strong housing market with excellent opportunities for rental properties. The city has a growing population, particularly young professionals and families, which contributes to increasing rental demand. Its affordable property prices and high cap rates make it an attractive option for multi-family investments.
- Median Property Price: $400,000+
- Vacancy Rate: 4.3%
- Rental Demand: Steady due to job market expansion
- Best for: Strong cash flow with potential appreciation
7. Denver, Colorado
Denver is known for its booming job market, particularly in tech and healthcare. However, the city’s property prices are on the higher side. Despite this, Denver remains a top choice for multi-family property investors due to its high appreciation rates and strong rental demand.
- Median Property Price: $550,000
- Vacancy Rate: 4.0%
- Rental Demand: Strong, particularly among young professionals
- Best for: High appreciation potential
8. Tampa, Florida
Tampa’s job market growth, particularly in healthcare, education, and finance, has driven demand for rental housing. The city’s relatively affordable housing market and strong rental yields make it an attractive choice for investors looking for both cash flow and appreciation potential.
- Median Property Price: $360,000+
- Vacancy Rate: 3.5%
- Rental Demand: High, driven by population and job growth
- Best for: Steady rental income and appreciation
9. Charlotte, North Carolina
Charlotte is another growing city in North Carolina that is attracting both residents and businesses. The city’s affordable real estate, coupled with a growing job market, makes it a prime location for multi-family property investment.
- Median Property Price: $410,000+
- Vacancy Rate: 4.5%
- Rental Demand: Steady, with growth in finance and tech
- Best for: Balanced cash flow and appreciation
10. Cleveland, Ohio
Cleveland offers some of the most affordable multi-family properties in the U.S., with steady rental demand and high cap rates. While property appreciation may not be as fast as in other cities, Cleveland is ideal for investors seeking reliable cash flow.
- Median Property Price: $120,000
- Vacancy Rate: 4.9%
- Rental Demand: Strong, particularly for affordable housing
- Best for: High cap rates and affordable entry point
11. Indianapolis, Indiana
Indianapolis is an affordable market with a growing population and steady job growth, particularly in healthcare and manufacturing. Its affordability makes it ideal for first-time multi-family investors looking to maximize cash flow.
- Median Property Price: $230,000
- Vacancy Rate: 5.0%
- Rental Demand: Steady, driven by job growth and population increase
- Best for: Affordable entry into multi-family investments
12. Nashville, Tennessee
Nashville’s booming entertainment and healthcare industries have contributed to strong population growth, making it an ideal city for multi-family properties. While property prices are rising, the demand for rental housing remains high.
- Median Property Price: $440,000
- Vacancy Rate: 3.8%
- Rental Demand: High, due to strong job market and population growth
- Best for: Long-term appreciation with strong rental yields
13. Salt Lake City, Utah
Salt Lake City is experiencing rapid growth, particularly in tech, healthcare, and finance. The city’s expanding job market and growing population have led to increased demand for rental housing, making it a strong contender for multi-family property investments.
- Median Property Price: $470,000+
- Vacancy Rate: 3.9%
- Rental Demand: High, driven by tech sector growth
- Best for: High growth potential with strong rental demand
14. Columbus, Ohio
Columbus offers an affordable market with a growing population and job opportunities, particularly in healthcare and education. The city has seen a rise in rental demand, making it a promising market for multi-family investors seeking both cash flow and appreciation.
- Median Property Price: $250,000
- Vacancy Rate: 4.6%
- Rental Demand: Steady, driven by education and healthcare sectors
- Best for: Affordable investments with solid growth potential
15. Chicago, Illinois
Chicago remains a prime location for multi-family property investments, particularly in neighborhoods where housing demand remains high. While property prices are higher than in some cities, the strong rental market and the city’s status as an economic hub provide opportunities for solid cash flow and appreciation.
- Median Property Price: $400,000
- Vacancy Rate: 5.1%
- Rental Demand: High in certain neighborhoods like Wicker Park and Logan Square
- Best for: High rental demand in established neighborhoods
16. Vancouver, Canada
Vancouver is one of Canada’s most desirable cities for real estate investments, though property prices are significantly higher. The city’s population growth, fueled by immigration, and the limited supply of housing contribute to high rental demand and appreciation.
- Median Property Price: CAD 1.2 million
- Vacancy Rate: 1.2%
- Rental Demand: Extremely high, driven by immigration and limited supply
- Best for: Long-term appreciation in a high-demand market
17. Berlin, Germany
Berlin is one of the best international markets for multi-family property investments. With its affordable real estate prices (compared to other European capitals), strong rental demand, and a rapidly growing population, Berlin offers excellent opportunities for investors.
- Median Property Price: €450,000+
- Vacancy Rate: 1.4%
- Rental Demand: High, due to population growth and rental culture
- Best for: Affordable entry into a European market with strong demand
18. Sydney, Australia
Sydney offers strong rental demand and steady population growth, particularly in the tech and finance sectors. While property prices are high, the city’s robust economy ensures consistent demand for rental properties.
- Property Price: AUD 1.1 million
- Vacancy Rate: 1.6%
- Rental Demand: High, due to strong economic conditions and population growth
- Best for: Long-term appreciation in a stable economy
19. Toronto, Canada
Toronto is one of the fastest-growing cities in North America, driven by immigration and a booming tech and financial sector. While real estate prices are high, the rental demand remains strong, making multi-family properties a viable investment option for those seeking steady income and long-term appreciation.
- Median Property Price: CAD 900,000
- Vacancy Rate: 1.5%
- Rental Demand: Very high, due to population growth and limited supply
- Best for: Steady rental income and appreciation in a growing metropolis
20. Houston, Texas
Houston’s affordability, job diversity, and population growth make it an attractive city for multi-family property investors. With a lower cost of living and strong demand for rental properties, Houston offers excellent cash flow opportunities.
- Median Property Price: $320,000
- Vacancy Rate: 5.2%
- Rental Demand: High, driven by the healthcare, energy, and manufacturing sectors
- Best for: Affordable entry point with high rental yields
21. Jacksonville, Florida
Jacksonville is an emerging market with a growing population and affordable housing options. The city offers strong rental demand, making it an excellent choice for multi-family investors looking for high rental yields and long-term potential.
- Median Property Price: $320,000
- Vacancy Rate: 4.4%
- Rental Demand: Increasing, due to job growth and population influx
- Best for: High rental yields and affordable investment
22. San Antonio, Texas
San Antonio offers a combination of affordable real estate, strong rental demand, and a growing economy. The city’s job market, driven by healthcare, education, and military sectors, makes it a solid option for multi-family investments.
- Median Property Price: $300,000+
- Vacancy Rate: 4.7%
- Rental Demand: Steady, due to population growth and affordable cost of living
- Best for: Affordable multi-family investments with steady cash flow
23. Kansas City, Missouri
Kansas City is an affordable market with a growing population, particularly among young professionals. The city’s job market, driven by tech, healthcare, and logistics, has contributed to a steady demand for rental housing.
- Median Property Price: $260,000+
- Vacancy Rate: 4.8%
- Rental Demand: Strong, particularly for affordable housing options
- Best for: Affordable investment with solid rental demand
24. Lisbon, Portugal
Lisbon has become a prime location for real estate investment in Europe, particularly due to its attractive visa programs, tax incentives, and affordable housing. The city’s increasing popularity among expats and digital nomads has led to a surge in rental demand.
- Median Property Price: €300,000+
- Vacancy Rate: 1.8%
- Rental Demand: High, driven by expats and tourism
- Best for: Long-term appreciation with steady rental income
25. Seattle, Washington
Seattle’s tech boom, led by companies like Amazon and Microsoft, has driven strong job growth and increased demand for rental properties. Despite higher property prices, Seattle remains a top choice for multi-family property investors due to its strong rental market.
- Median Property Price: $750,000+
- Vacancy Rate: 4.1%
- Rental Demand: Strong, particularly among tech professionals
- Best for: High appreciation and rental income in a tech-driven economy
26. Melbourne, Australia
Melbourne is another top market in Australia for multi-family property investments. The city’s population growth, driven by immigration and its strong economy, ensures a steady demand for rental properties.
- Median Property Price: AUD 850,000+
- Vacancy Rate: 1.7%
- Rental Demand: High, due to population growth and economic strength
- Best for: Long-term growth with strong rental demand
27. Philadelphia, Pennsylvania
Philadelphia offers a blend of affordable property prices and strong rental demand, particularly among young professionals and students. The city’s diverse economy and affordable living conditions make it a solid option for multi-family investors.
- Median Property Price: $320,000+
- Vacancy Rate: 5.3%
- Rental Demand: Steady, driven by student and workforce housing
- Best for: Affordable investment with stable rental demand
28. Los Angeles, California
Los Angeles remains one of the most sought-after real estate markets in the U.S., particularly for multi-family properties. While property prices are high, the city’s strong rental market, driven by entertainment, tech, and tourism, offers excellent long-term returns.
- Median Property Price: $900,000+
- Vacancy Rate: 4.2%
- Rental Demand: Extremely high, particularly in popular neighborhoods like Downtown and Hollywood
- Best for: Long-term appreciation and high rental yields
29. Miami, Florida
Miami’s booming real estate market, driven by its status as an international business hub, continues to attract investors. The city’s warm climate, tourism, and growing economy ensure strong demand for rental properties, making it a great market for multi-family investments.
- Median Property Price: $450,000
- Vacancy Rate: 3.9%
- Rental Demand: Strong, particularly in downtown and waterfront areas
- Best for: High rental income and long-term growth
30. Honolulu, Hawaii
Honolulu offers a unique multi-family property investment opportunity due to its limited land supply and high demand for rental properties. While property prices are high, the city’s thriving tourism industry ensures steady rental demand year-round.
- Median Property Price: $700,000
- Vacancy Rate: 2.5%
- Rental Demand: Very high, driven by tourism and limited housing supply
- Best for: High rental demand and long-term appreciation
Conclusion: Finding the Best Places to Buy Multi-Family Properties
In conclusion, choosing the best places to buy multi-family properties requires thorough research and a keen understanding of local real estate trends.
Cities such as Austin, Phoenix, and Raleigh-Durham provide the best balance of a growing population, job market, and rental demand for 2024. However, international markets like Berlin and Sydney offer equally attractive opportunities, provided investors are prepared to deal with different regulations and price structures.
To decide on which property to invest in, you have to consider the demand for rentals, the availability of property, and the rate of vacancy. If done properly, multi-family property investments yield a good cash flow with long appreciation and have been a valuable strategy.
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