Raleigh-Durham leads the way as the nation's top market for multifamily acquisitions, according to a new report from CrowdStreet.

There are, in fact, a number of smaller-sized cities that are ripe for apartment acquisitions, the report finds, as renters have moved en masse to these markets, abandoning pricey urban centers and coastal cities for the suburbs, the Sun Belt, and secondary gateway cities. 

Like their larger counterparts, smaller cities' multifamily fundamentals have remained relatively stable thanks to government stimulus and eviction moratoriums that have kept rent collections near pre-COVID levels. Collections never dropped below 93% in 2020, according to the National Multifamily Housing Council, helping to push vacancy rates for suburban multifamily product lower (to 6%) and downtown vacancy higher (to 9%). This was reflected in last year's investment flows with 75.8% of multifamily investment happening outside of major metros, according to Newmark.