Population growth has made the sunbelt states among the mostpopular markets for multifamily investment this year. Arizona,Nevada, Texas, Florida and Georgia are the states with thestrongest population growth, and they have seen strong multifamilyinvestment activity as a result. Investors are targeting value-adddeals in these markets.

“There has been a shift in investor sentiment away from colderclimates towards the sunbelt and the coasts, leading all of the top10 cities for population growth to be scattered between Arizona,Nevada, Texas, Florida and Georgia,” Chris Hanson,founding principal of the Hanson Capital, tellsGlobeSt.com. “I think there's still opportunity in value-addinvestment where you buy a class-C property in a class-B area andthen improve the property to modern interiors and amenities thatcreates value for the investor. This works with class-B property inclass-A areas although generally not as well because it competeswith new construction but a variation of this model is somethingwe've been doing for 11 years now.”