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Multifamily Investors Favoring Sun Belt Metros, Yardi Matrix Reports

Financing hurdles, potential rent growth slowdown spark volatility as 2023 begins

SANTA BARBARA, Calif., Feb. 22, 2023 – U.S. multifamily market investors, who powered a near-record sales year in 2022 but face significant volatility this year, are gravitating toward Sun Belt markets with strong job and population growth, according to a new research bulletin from Yardi® Matrix.

Despite a sharp second-half slowdown, last year’s $187 billion transaction volume was the second-highest annual total ever. In 2023, with higher financing costs, rising debt service payments and a slowdown in rent growth looming, “the flow of capital continues to trend toward the Sun Belt,” which includes 2022 sales volume leaders Atlanta, Phoenix, Dallas, Houston, Miami and Orlando, Fla., the bulletin says.

Each of these metros is in a state that has recorded above-trend population growth in recent years. The Southeast, Southwest and West regions accounted for $148 billion of sales in 2022, 79% of the total.

Even as they ride out the current wave of market uncertainty, many investors still “view multifamily as a safer place to park capital than other investment products or other commercial property classes such as office or retail,” the bulletin reports.

Get up to date on the state of multifamily investment including key volatility factors and a 2022 sales recap by region, market type and volume from the full Yardi Matrix bulletin.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit to learn more.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies around the world. With over 8,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit

About the author

Jeff Adler

Jeffrey Adler is Vice President, of Yardi® Matrix, the data division of Yardi Systems.

Yardi® Matrix is a US multifamily, student, office, medical office/lab space, industrial, and self-storage asset information toolset for originating, underwriting, and asset managing commercial real estate investments, with over 800 clients worldwide. Yardi® Matrix provides investment strategy, market and institutional research reports leveraging the underlying property level detail of 135 markets, >92,000 multifamily properties and >18 MM units. Mr. Adler also leads Commercial Property Executive and Multi-Housing News, two digital media websites.

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