Top Five Performing Secondary Apartment Markets

by  – Property Management Insider

Cap rate compression and price appreciation has led to more apartment investors seeking opportunities in smaller markets across the country. MPF Research examines which smaller markets have performed well of late, and which ones offer promise going forward.

Major markets, according to MPF Research, are the top 50 apartment markets according to the total number of apartment units. Secondary markets, as defined by MPF, are those markets outside the top 100 and typically have between 25,000 to 85,000 apartment units.

Looking at the apartment performance of secondary markets over the past year, there are five metros that clearly stood above the rest. These five markets all rank in the top five of annual revenue growth and annual rent change among secondary markets.

Rank Metro Annual
Revenue Growth
Occupancy Annual
Rent Change
1 Fort Myers/Naples, FL 9.5% 96.4% 7.0%
2 Santa Rosa/Petaluma, CA 7.5% 98.2% 6.8%
3 Corpus Christi, TX 6.9% 96.9% 6.3%
4 Sarasota/Bradenton. FL 6.6% 96.3% 5.8%
5 Honolulu, HI 6.1% 97.4% 6.2%


Top Secondary Markets Looking Forward

While this list of top performing secondary markets deals with past performance, here are some markets that MPF Research likes going forward:

  • Corpus Christi, TX
  • Santa Rosa/Petaluma, CA
  • Greenville, SC
  • Charleston, SC
  • Oklahoma City, OK
  • Madison, WI
  • Albany, NY

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