We're excited to share that our annual Best Places to Invest report is now live for 2022. We've ranked Austin, Texas, as the best market for commercial real estate investing overall, followed by Raleigh-Durham, Nashville, Orlando, and Seattle. The full report also breaks down the best places to invest across multiple asset classes including multifamily, build-to-rent, industrial, office, hotel, retail, and life sciences.
This year’s top market, Austin, finished second in 2021. It continues to have many advantages to recommend it, from its relative affordability and vibrant cultural offerings to its enviable status as a relocation city of choice for Silicon Valley businesses and employees. The city of 950,000 has seen its population skyrocket 21% over the last decade, driven by strong tech sector job growth; major players such as Tesla, Oracle, and Google have either moved or expanded there. The presence of the state capital and more than 25 universities—including the nation’s sixth top public university—along with its location in a tax-free state, also contribute to Austin’s strong long-term outlook.
Raleigh-Durham, CrowdStreet’s number one market in 2021, again finished strong, this time at number two. Its combined population of more than 750,000 in the 2020 census has grown by 23% since 2010, making it the nation’s second-fastest-growing metropolitan statistical area after Austin. In fact, Raleigh-Durham has seen its job and population growth continue to accelerate even under pandemic conditions. It benefits from its proximity to three tier-1 research universities—more than 550 life sciences companies are based there, including Biogen and Bayer—and its burgeoning market reflects robust deal-making in the office, retail and life sciences markets.
In the number three position, Nashville continues to benefit from a tech sector influx. Meanwhile, Orlando, Fla. jumped from 18th to 4th for 2022, thanks in large part to a 2021 surge in multifamily demand that spurred 23.1% annual rent growth and absorption that has outpaced supply.
Seattle also moved way up—nine spots—to finish at number five. With Amazon slated to add 25,000 jobs over the next five years, “We expect to continue to see meaningful rent growth and higher property values here in 2022 across several sectors including multifamily, retail, and industrial,” Chief Investment Officer Ian Formigle says.