https://www.multihousingnews.com/beyond-the-sun-belt-the-case-for-midwest-multifamily
Marquette Companies’ president Trevor Ryan recently authored a thought leadership piece in Multi-Housing News on the outlook for multifamily housing in the Midwest. With dozens of properties in the Marquette portfolio located throughout the Midwest, Ryan shared insights from his
decades of experience in development and property management in the region.
While the coasts and the Sun Belt tend to grab headlines for their high highs and low lows in population growth and new housing starts, Ryan noted the Midwest is emerging as a top investor destination due to its stability during this current cycle of economic volatility.
The Midwest is home to a diverse economy supported by health care, education, technology and manufacturing, among other industries, with downtown Chicago alone adding 32,000 new jobs in 2024, according to the Bureau of Labor Statistics. Ryan said the region’s affordability is also more attractive than other markets across the country.
While Marquette continues to underwrite deal flow in many Sun Belt markets and has observed negative trade-outs in other cities like Phoenix, Dallas, Florida and Atlanta, Ryan has seen consistent and, in some cases, higher returns and rent growth throughout the firm’s Midwest portfolio due to limited new construction and strong demand drivers.
Looking ahead, Ryan noted the Midwest’s multifamily market is set for sustained growth, with CBRE data projecting 4% to 5% annual rent increases through 2027 due to ongoing supply constraints. This also means developers can turn to older housing stock for ample value-add opportunities, which is a strong sweet spot for Marquette Companies.