Dear Investor,
Net domestic migration, where people move from one part of the country to another, is a key multifamily performance driver.
Simply put, when a state or MSA gets more people moving in than leaving, you will find positive multifamily absorption (new renters) along with lower vacancy rates and higher rent growth.
For decades, northeastern retirees have migrated to Florida.
Warmer weather, lower expenses, and the lack of state income tax drew them to the Sunshine State.
Today, however, the appeal may be fading.
By way of disclosure, we have an advertising relationship with 37th Parallel, meaning we get paid for making this introduction and sharing this content. As always with these types of deals, consider this an introduction and not a recommendation. Every deal is unique and the responsibility to vet any and every deal you invest in still lies with you. This opportunity is available to accredited investors only.
Florida's living costs have skyrocketed. Home prices have risen 80% in the last five years, and homeowner's insurance has increased 102% in the last three years. In 2023, the average Florida homeowner paid over $6,000 for their home insurance policy - the highest insurance premiums in the U.S. at three times the national average.
Many middle-class Florida retirees living on a fixed income are experiencing sticker shock, fueling what people call the halfback movement. That movement is the migration of retirees out of Florida and into states roughly halfway back to their original state. States like Georgia, North Carolina, and Tennessee benefit significantly from this movement.
These states enjoy warmer weather than up north but with a lower cost of living than Florida.
The data is telling:
North Carolina is particularly interesting.
From July 2022 to July 2023, eighteen states experienced population declines, but North Carolina experienced continued annual increases.
Over an even longer time horizon, in the last seventy years, North Carolina only lost population in two years, and even then, both years saw less than a half-percent decline.
Obviously, the halfback movement is just part of the story.
North Carolina, and specifically the Charlotte and Raleigh/Durham metropolitan areas are attractive places to live with strong job growth, affordable housing, attractive schools, good weather, and more.
If you haven't had the chance yet, you may want to check out 37th Parallel's current multifamily offering in one of the best Charlotte, NC submarkets.
The institutional-grade property, previously owned by Blackstone, was acquired in October of 2023 and only has limited positions available in its original raise. Greys Harbor was purchased below replacement cost and comparable market sales and is already cash-producing with unit improvement initiatives already underway.
37th Parallel Properties is an established and successful multifamily acquisitions and asset management firm with over $1 Billion in multifamily transactions and a 100% profitable track record for their investors since inception in 2008. Their conservative investment model and consistent performance are why I (Jim) and many other White Coat Investor readers choose to invest with them.
Learn More About 37th Parallel Today!
Jim and Brett
James M. Dahle, MD, FACEPFounder, The White Coat Investor
Brett Stevens, MBA
COO, The White Coat Investor
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